NEW YORK/HONG KONG — Wealthy investors are scaling back their exposure to the U.S. and turning to other assets in response to volatile trade policy and renewed fears that tensions between the world’s two largest economies could spread to the financial sector.
Investors on Monday sold off Treasurys after credit rating agency Moody’s downgraded U.S. sovereign debt on Friday to AA1 from AAA, citing Washington’s rising debt levels and interest rates “that are significantly higher than similarly rated sovereigns.”
