Weekly Regional View Italian

Equity markets remain resilient thanks to strong AI progress despite significant geopolitical tensions in the Middle East and cooling global oil inventories. UBS maintains its equity allocation while rotating into defensive sectors like healthcare and Switzerland.

Key Takeaways

• 1.Artificial Intelligence is the primary driver of equity market returns, with semiconductors and memory accounting for nearly 75% of the S&P 500's year-to-date gains.
• 2.Global oil inventories are dropping significantly (from 8.2bn to 7.8bn barrels) due to the closure of the Strait of Hormuz amid the war in Iran.
• 3.The center of gravity in emerging markets is shifting, with Taiwan's index weight surpassing mainland China's for the first time in nearly 20 years due to the tech boom.

Table of Contents

• All over the map
• Global asset class preferences definitions
• Appendix
• Risk Information

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