Deutsche Bank bullish on tech-driven sectors

Although, geopolitical tensions and trade policy shifts likely to add further uncertainty.

Deutsche Bank remains optimistic about long-term investment prospects, particularly in sectors poised to benefit from technological advancements like artificial intelligence (AI).

The bank’s latest 2025 Annual Outlook predicts moderate global economic growth, with UD GDP projected at 2.0%, Eurozone at 0.9%, and China at 4.2%, reflecting subdued performances compared to historical averages. 

Persistent inflation, driven by higher fiscal spending and potential tariff hikes, is expected to limit central banks’ ability to lower interest rates, contributing to market volatility. 

Geopolitical tensions and trade policy shifts are likely to add further uncertainty.

Deutsche Bank's Global CIO, Christian Nolting several key themes for 2025 investments.

Equities remain a focal point for investors seeking growth, with US stocks expected to outperform due to rising corporate profits, deregulation, and tax relief. 

The bank also sees opportunities in specific European equities and highlights the potential of German industrial and financial firms, despite weaker domestic economic conditions.  

Corporate bonds in the US, Asia, and Europe are projected to attract demand due to high yields and term premiums. 

Commodities such as oil are anticipated to remain balanced in pricing, whilst gold is expected to stay in demand as a hedge. Long-term optimism for copper stems from energy transition and digitalisation trends.

The outlook also underscores the importance of infrastructure investments, with a focus on data centers, logistics, and private equity opportunities. 

Currency markets are expected to favour the US dollar, supported by strong economic growth and interest rate differentials, whilst the euro and yuan face pressures from potential US tariffs.

Deutsche Bank advises investors to brace for risks associated with recession, interest rates, and market rotations. 

It also recommends a diversified portfolio and active risk management to navigate geopolitical uncertainties and achieve long-term success.