HSBC turns bullish on U.S. equities, citing earnings momentum
HSBC upgraded U.S. equities to 'overweight' due to strong earnings momentum and easing geopolitical risks, while downgrading Europe ex-UK to 'neutral' over growth and energy concerns. The bank highlighted robust corporate earnings, strong buyback activity, and favorable seasonality supporting U.S. stocks. It maintained a preference for sectors with low commodity input costs and upgraded global Basic Materials, while downgrading health care and industrials. HSBC cautioned on energy prices and potential sector rotation if oil remains elevated.
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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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