European investors' appetite for US stocks has waned, potentially signaling the beginning of a prolonged decoupling.

Recently, despite Trump's softening of his rhetoric towards Europe, Wall Street remains concerned that his hostility and denigration of the continent could lead to the exit of one of the largest groups of buyers of US stocks. Indeed, there are already signs that this is happening. Vincent Mortier, chief investment officer of Amundi, Europe's largest asset manager managing €2.3 trillion ($2.7 trillion) in assets, said, "We are seeing more and more clients looking to diversify their US stock holdings. This trend started in April 2025, but has accelerated this week." He stated that any form of "decoupling" will be a long and complex process. European investors hold approximately $10.4 trillion in US stocks, more than half of which are held by investors from the eight countries Trump has threatened to impose tariffs on. Hugo Ste-Marie, a strategist at Scotiabank, pointed out that Europeans hold 49% of all foreign-held US stocks, a massive proportion that poses a threat to the market. While a coordinated European sell-off of US assets is unlikely, fund managers from London to Berlin to Madrid are receiving increasing inquiries from clients about reducing their US asset holdings as Trump's threats and insults continue. (Jinshi)