Daily Europe House View

UBS maintains a positive outlook on equities and quality bonds, citing strong corporate earnings and AI demand as pillars for growth despite geopolitical tensions in the Middle East and inflationary pressures.

Key Takeaways

• 1.Global equities remain supported by robust earnings (20% EPS growth for S&P 500) and AI demand despite geopolitical risks.
• 2.Short- and medium-term quality bonds offer an attractive risk-reward profile as markets may be overestimating the extent of further rate hikes.
• 3.Oil prices are expected to remain contained despite a 12% loss in global supply, provided the Strait of Hormuz reopens.

Table of Contents

• From Circle One
• Thought of the day
• Caught our attention
• Market update
• Global asset class preferences definitions
• Appendix

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