1412 GMT - HSBC's preferred asset classes are in risky credit, including emerging-market and high-yield corporate bonds, as well as emerging-market sovereign bonds, the bank's strategists say in a multi-asset update. They forecast a "goldilocks" scenario for the U.S. economy, where recession looks unlikely and inflationary pressures drop back. HSBC is also overweight eurozone, emerging-market and U.S. equities, although more cautious on U.K. and Japanese equities. It favors duration in developed-market sovereign debt, preferring gilts and U.S. Treasurys. However, HSBC is also overweight on gold. Gold has hit all-time highs recently and the strategists attribute this to safe-haven demand amid geopolitical tensions and tariff concerns. (jessica.fleetham@wsj.com)

(END) Dow Jones Newswires

February 25, 2025 09:13 ET (14:13 GMT)

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