Report published August 28, 2026
UBS Research: EMEA Macro Outlook and Investment Ideas (August 2026)
Source and citation context
- Issuer
- UBS
- Report date
- August 28, 2026
- Analysis as of
- Not stated in source
Authors / editors: Themis Themistocleous, Dean Turner, Maelle Quillevere, Matthew Gilman, Thomas Wacker, Rochus Baumgartner, Constantin Bolz, Maximilian Kunkel
Finvaulta summarizes UBS's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
UBS presents its EMEA macroeconomic and investment strategy, highlighting an upgrade in Eurozone 2026 earnings growth to 15% and an Attractive rating on European equities. Across asset classes, the firm recommends European IT, quality medium-duration credit, carry currencies, and higher-rated GCC debt.
Key Takeaways
- 1.UBS raised its 2026 Eurozone corporate earnings growth forecast to 15% (from 10%) following strong 2Q results (+22% y/y), maintaining an Attractive stance on European equities.
- 2.European Information Technology has been upgraded back to Attractive due to normalized P/E multiples, accelerating earnings revisions, and rising AI capex.
- 3.In fixed income, medium-term bonds (2–6 years in USD/GBP, 2–10 years in EUR/CHF) and quality A/BBB corporate credits are preferred for attractive defensive carry.
Table of Contents
- Section 1: New this month
- Section 2: Macro outlook
- Section 3: Equities
- Section 4: Fixed income
- Section 5: Foreign exchange
- Section 6: CEEMEA
- Appendix
Report data
Global asset class preference and European equity / sector ratings
| Metric | Estimate | Context |
|---|---|---|
| Eurozone 2Q Earnings Growth | 22 % y/y | Corporate earnings grew 22% y/y (11% ex-energy), the fastest pace since 2022. |
| Eurozone 2026 Earnings Growth Forecast | 15% | Forecast raised from 10% to 15% following 1H results. |
| EuroStoxx 50 Target Dec 2026 | 6900 points | Target raised from 6,700 to 6,900 points. |
| Eurozone Real GDP Growth Forecast | 0.8% | UBS forecasts Eurozone GDP growth of +0.8% in 2026 and +1.2% in 2027. |
| Eurozone Inflation Peak Forecast | 3% | Eurozone inflation is expected to peak at 3% in late 2026 before returning toward target. |
Reports in this series
EMEA Macro Outlook and Investment Ideas is shown in chronological order through this edition, published on August 28, 2026.
Part of the EMEA Macro Outlook and Investment Ideas series — view all 3 editions
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Authors / Editors
Reported Data Context
- Eurozone 2Q Earnings Growth: 22 % y/y (2Q 2026) · Source: LSEG Datastream, UBS
- Eurozone 2026 Earnings Growth Forecast: 15 % (2026) · Source: UBS CIO
- EuroStoxx 50 Target Dec 2026: 6900 points (Dec 2026) · Source: UBS
- Eurozone Real GDP Growth Forecast: 0.8 % (2026) · Source: UBS
- Eurozone Inflation Peak Forecast: 3 % (Late 2026) · Source: UBS