EMEA Macro Outlook and Investment Ideas

Latest edition · August 28, 2026

Global financial markets en 1665401

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.

UBS CIO EMEA maintains a positive outlook on European equities and high-quality fixed income carry. With Eurozone 2Q earnings accelerating 22% y/y, UBS raised its 2026 earnings forecast to 15% and upgraded European Information Technology to Attractive alongside a new Swiss mid-cap theme. In fixed income, defensive carry in 2–10 year maturities and A/BBB credits is favored. In FX and CEEMEA, limited central bank divergence supports carry trades (e.g., ZAR, BRL, MXN), while geopolitical risks in the Middle East warrant a quality bias in GCC credit focused on sovereign and national champion bank issuers.

Key takeaways from the latest edition

• 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.

What this series covers

• Section 1: New this month
• Section 2: Macro outlook
• Section 3: Equities
• Section 4: Fixed income
• Section 5: Foreign exchange
• Section 6: CEEMEA
• Appendix

Edition archive

• Global financial markets en 1665401

  August 28, 2026

• Global financial markets en 1662488

  June 30, 2026

• Global financial markets en 1660668

  June 4, 2026