European Nations Hold $8 Trillion in U.S. Assets to Counter Trump's Tariffs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: CNBC
- Asset Holding Advantage: Deutsche Bank analysts highlight that European countries hold approximately $8 trillion in U.S. bonds and equities, nearly double that of the rest of the world, providing them with a significant negotiating advantage amid Trump's proposed tariffs.
- Potential Trade War Impact: Should geopolitical tensions escalate into a full-blown trade war, it could prompt European institutional investors to withdraw capital and reduce dollar holdings, leading to profound implications for capital markets.
- Countermeasures Consideration: France is reportedly considering the EU's Anti-Coercion Instrument (ACI), which could impose restrictions on U.S. companies, affecting imports, exports, and market access, thereby enhancing the EU's leverage in negotiations with the U.S.
- Deepening Market Interdependence: Deutsche Bank notes that with the U.S. net international investment position at record negative extremes, the mutual interdependence of European and U.S. financial markets has never been higher, suggesting that the weaponization of capital could disrupt markets more significantly than trade flows.
Analyst Views on DB
Wall Street analysts forecast DB stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DB is 41.98 USD with a low forecast of 35.44 USD and a high forecast of 46.63 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 38.870
Low
35.44
Averages
41.98
High
46.63
Current: 38.870
Low
35.44
Averages
41.98
High
46.63
About DB
Deutsche Bank Aktiengesellschaft is a bank and holding company for its subsidiaries. The Company offers a range of services such as investment, financial and related products and services to private individuals, corporate entities, and institutional clients. It operates through four business divisions: Corporate Bank, Investment Bank, Private Bank and Asset Management. The Corporate Bank division serves corporate clients and financial institutions, offering cash management, trade finance, lending, foreign exchange, trust and agency services, correspondent banking, and securities services. The Investment Bank division includes Fixed Income & Currencies (FIC) Sales & Trading, Origination & Advisory, and Deutsche Bank Research. The Private Bank division focuses on personal and private clients, wealthy individuals, entrepreneurs and families. The Asset Management division operates under the brand DWS, and it serves a diverse client base of retail and institutional investors worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
