LIVE MARKETS-European healthcare and consumer stocks as AI hedges

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EUROPEAN HEALTHCARE AND CONSUMER STOCKS AS AI HEDGES

European fund managers often like to tout the region as offering diversification to AI trades, and while there's a lot of talking their book, the recent tech jitters suggest that certain pockets of the market do actually seem to work as hoped.

HSBC analysts say European consumer staples and healthcare stand out as the best AI hedges.

They say the Nasdaq has fallen by 1% on 22 occasions since June and on 86% of those, European consumer staples have risen. .SXCSP

Healthcare stocks haven't worked quite as well, but have risen nearly 70% of the time the Nasdaq has fallen 1%. .SXDP

HSBC are not getting too excited.

They say: "We do not expect the AI trade to roll over further. And in the face of a much deeper decline in global tech, these resilient sectors in Europe might come under pressure. Yet this highlights potential pockets to consider should such a scenario unfold."

Thursday is proving another test, which they are passing, for now. Nasdaq 100 futures are down 1.6% and European healthcare and consumer staples are up 0.8% and 0.3%, respectively.

(Alun John)

EARLIER LIVE MARKETS POSTS

GO LONG GILTS INTO THE BUDGET, UBS SAY CLICK HERE

LOTS OF REASONS TO SELL EUROPEAN STOCKS ON THURSDAY CLICK HERE

BEFORE THE BELL: LOTS OF COMPANIES REPORTING INTO A SHAKY MARKET CLICK HERE

MORNING BID FRANCE'S DEBT STRAINS, AI IN FOCUS CLICK HERE