Credit Suisse cuts U.S. stocks to underweight, upgrades European markets on pandemic response

Traders wearing masks on the floor at the New York Stock Exchange.
Brendan McDermid | Reuters

Credit Suisse global strategists cut their rating on U.S. stocks to a slight underweight and raised European equities to a small overweight because Europe appears to be handling the Covid-19 pandemic more effectively than the U.S.

"Significantly, a correlation between the gap in new daily infections and the relative performance of European equities relative to US equities in USD terms is starting to emerge," according to Andrew Garthwaite and the other strategists.