Overview
- US Treasury data show EU-based investors hold over $10 trillion in U.S. securities, with additional holdings in the UK and Norway, giving Europe theoretical financial leverage.
- Deutsche Bank’s George Saravelos says the potential “weaponisation of capital” poses a bigger market risk than trade measures because the U.S. relies on foreign financing.
- Markets reflect rising concern: the dollar and U.S. equity futures weakened while gold, the Swiss franc and the euro strengthened, with the euro rebounding from a six‑week low.
- The EU’s tangible steps focus on trade, including a proposal to halt approval of its July deal with Washington and discussions on tariffs covering €93 billion of U.S. goods.
- Strategists from Societe Generale, Rabobank and ING emphasize that most U.S. assets in Europe are held by private investors, limiting government control and making forced selling improbable despite public-sector holders like Norway’s sovereign wealth fund.