COPENHAGEN: Danske Bank has increased the portion of its portfolios invested in stocks, mostly in Europe and the United States, as it expects heightened political risk in emerging markets during Donald Trump's presidency.
Improved prospects for the global economy and for corporate earnings prompted Danske Bank, Denmark's largest, to increase its holding of equities, it said in a newsletter published Friday.
The move means an investor with middle risk and a mid-term time horizon would have 50 percent in shares and 50 percent in bonds.
"We assess that emerging market shares are more vulnerable to political risks in relation to Trump than European shares," chief strategist Tine Choi said.
"A US trade war with China would for example hit emerging markets very negatively," she said.
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