HSBC Research Reports & Analysis

HSBC's institutional research reflects a constructive macro stance alongside tactical cross-asset adjustments across global equities, fixed income, currencies, and commodities. Heading into H2 2026, the firm maintains a maximum overweight in global equities, arguing that fears of AI overspending are overstated and favoring allocations to eurozone equities and banks alongside tech-leveraged Asian economies like Taiwan and Korea. In fixed income and quantitative analytics, HSBC anticipates shifting duration dynamics, with its proprietary TYCCLES model transitioning US Treasuries to a sticky 'moderate sell-off' regime expected to lift 10-year yields by around 15 basis points. Foreign exchange strategy points to a grinding appreciation for the US dollar anchored by firm FOMC policy and economic resilience, even as military-financial dynamics encourage structural reserve diversification. Meanwhile, sector coverage highlights surging power demand driven by AI data centers reaching 194GW by 2035, while European gas storage tightness and geopolitical supply constraints sustain energy sector volatility. Across banking equity strategy, HSBC leverages its PEMCV framework to upgrade US and South African banks to positive, while shifting mainland China to neutral amid evolving regional risk profiles.