Daily US

UBS remains constructive on equities for the next 12 months, driven by robust AI-related capex and a resilient economy. They also highlight potential in non-US markets including Asia and Europe.

Key Takeaways

• 1.Equities are expected to rise over the next 6-12 months due to strong AI capex, a resilient US economy, and corporate earnings growth.
• 2.AI-related capital expenditure is forecasted to grow significantly, supporting the tech sector and the broader market.
• 3.Markets are likely over-pricing central bank tightening, and there remains potential for gains in fixed income.

Table of Contents

• Why we believe equities can still move higher
• From the studio
• Thought of the day
• What to watch: 22 June
• The rest of the market also has the potential to contribute to returns.
• We see appealing opportunities in Asia and Europe.
• Caught our attention
• Hawkish signals mask limited scope for European tightening.
• UK politics in focus.
• Market update
• Appendix

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