HSBC turns bullish on U.S. equities, citing earnings momentum
HSBC has upgraded its outlook on U.S. equities to 'overweight' due to positive earnings momentum and reduced geopolitical risks. In contrast, the brokerage downgraded European equities to 'neutral' due to weaker economic activity and higher energy price risks. HSBC also highlighted significant buybacks and strong earnings reports from U.S. companies as contributing factors to its bullish stance.
- ▪HSBC upgraded its stance on U.S. equities to 'overweight' from 'neutral'.
- ▪The brokerage downgraded Europe ex-UK to 'neutral' due to weaker economic activity.
- ▪Nearly 30 percent of U.S. companies have reported earnings, with 84 percent exceeding expectations.
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ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountHSBC on Tuesday upgraded its stance on U.S. equities to “overweight” from “neutral, as earnings momentum and easing geopolitical risks turned the narrative back towards fundamentals.The British brokerage, however, downgraded Europe ex-UK to “neutral,” saying “European activity looks much weaker and is more at risk from higher energy prices.”Earlier this month, some Wall Street brokerages, including Citigroup and BlackRock Investment Institute, which upgraded U.S. equities, have struck a similar note, favoring U.S. stocks over their global peers.HSBC noted that nearly 30 per cent of U.S.
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