Asian Currencies Hold Steady as Indian Rupee Slides to Record Low on Fed Outlook 
BOJ Expected to Deliver December Rate Hike as Economists See Borrowing Costs Rising Through 2025 
Asian Currencies Steady as Fed Delivers Hawkish Rate Cut; Aussie and Rupee Under Pressure 
Global Markets Slide as Tech Stocks Sink, Yields Rise, and AI Concerns Deepen 
Japan Weighs New Tax Breaks to Boost Corporate Investment Amid Spending Debate 
Fed Near Neutral Signals Caution Ahead, Shifting Focus to Fixed Income in 2026 
Asian Stocks Rally as Tech Rebounds, China Lags on Nvidia Competition Concerns 
Fed Rate Cut Signals Balance Between Inflation and Jobs, Says Mary Daly 
Ireland Limits Planned Trade Ban on Israeli Settlements to Goods Only 
ADB Approves $400 Million Loan to Boost Ease of Doing Business in the Philippines 
Australia’s Labour Market Weakens as November Employment Drops Sharply 
Hong Kong Cuts Base Rate as HKMA Follows U.S. Federal Reserve Move 
Indonesia–U.S. Tariff Talks Near Completion as Both Sides Push for Year-End Deal 
Gold Prices Hold Firm as Markets Await Fed Rate Cut; Silver Surges to Record High 
Gold Prices Slip Slightly in Asia as Silver Nears Record Highs on Dovish Fed Outlook 
Wall Street Futures Dip as Broadcom Slides, Tech Weighed Down Despite Dovish Fed Signals 
UBS has raised its outlook on European equities ahead of the second-quarter earnings season, highlighting potential upside in select company results despite muted regional forecasts. The bank’s European Equity Strategy update notes that Q2 earnings growth is expected to remain subdued, with full-year 2025 projections trimmed to just 2%. This cautious stance stems from continued macro headwinds, including trade tariffs and unfavorable currency moves.
Earnings momentum in Europe has stagnated, with no significant growth recorded since 2022—continuing a broader trend of flat performance between 2010 and 2016. Nevertheless, UBS maintains a constructive medium-term view, forecasting a return to earnings growth in 2026, driven by cyclical sectors benefiting from fiscal stimulus and improved consumer spending.
In the near term, however, the spotlight is on company-specific earnings surprises and guidance. UBS analysts have conducted a cross-sector review and identified 21 companies likely to outperform expectations and 10 names that may warrant caution. These picks are based on sector forecasts and crowding data from UBS Quant Research, which gauges investor positioning intensity.
UBS notes that even modest earnings beats or reaffirmed guidance could trigger positive stock reactions given the low expectations heading into the quarter. Commentary that offers insight into 2026 performance is expected to resonate well with investors.
The firm’s increased conviction stems not from a broad macro recovery but from differentiated earnings dynamics at the company level. As valuations across the region remain selectively attractive, the Q2 earnings season is poised to be a critical test for the “Case for Europe.” UBS believes companies showing cost discipline, resilience, or sector-specific strength could emerge as key outperformers in an otherwise cautious environment.
