LONDON- Goldman Sachs Asset Management said it had scaled back overweight exposure to emerging market currencies and emerging market debt, citing heightened trade tensions.
And escalating trade war between the United States and China which has seen both levying tariffs on each other's imports has kept markets on edge in recent days. Sentiment steadied somewhat after U.S. President Donald Trump softened his rhetoric over the past two days.
Goldman Sachs Asset Management said it had made the move until clarity emerged "on the direction of travel for both U.S.-China trade relations and global growth, with the two being interconnected."
After strong early-2019 performance, Goldman Sachs said it had also scaled back overweight exposure to U.S. corporate credit.
"That said, we continue to identify attractive 'carry and roll' opportunities arising from steepness at certain portions of US credit curves," it said in a research note.
(Reporting By Tom Arnold, editing by Karin Strohecker) ((Tom.Arnold@thomsonreuters.com; +442075428510; Reuters Messaging: tom.arnold.thomsonreuters.com@reuters.net))
