Lates News

UBS believes that the market may have underestimated the degree of sustainability of the current earnings cycle, more so than the impact of geopolitical noise from the Strait of Hormuz. The fundamental judgment is that the energy flow through the Strait will gradually recover rather than rebound rapidly, which will continue to support the stock market's upward movement amid strong earnings growth. UBS points out that the momentum of the U.S. Q2 earnings season is strong, with both the breadth and magnitude of earnings exceeding historical averages. The bank also states that it still believes there is an upside risk to its forecast of a 20% growth in earnings per share for the S&P 500 this year, noting that factors such as resilient consumer spending and improved cyclical strength should support the spread of gains beyond leading companies. In Europe, UBS indicates that companies are reporting their strongest performance in over three years, with earnings estimates for the Stoxx 600 index being continuously revised upwardsthis trend reinforces the bank's view that investors should maintain a diversified stock allocation to fully participate in market gains. In Asia, UBS expects corporate profits to grow by 72% this year.