Asian Markets Slide as Silver Volatility, Earnings Season, and Central Bank Meetings Rattle Investors 
S&P 500 Rises as AI Stocks and Small Caps Rally on Strong Earnings Outlook 
IMF Forecasts Global Inflation Decline as Growth Remains Resilient 
Gold, Silver, and Platinum Rally as Precious Metals Recover from Sharp Selloff 
Philippines Manufacturing PMI Hits Nine-Month High Despite Weak Confidence Outlook 
Japan Finance Minister Defends PM Takaichi’s Remarks on Weak Yen Benefits 
Taiwan Urges Stronger Trade Ties With Fellow Democracies, Rejects Economic Dependence on China 
UK Employers Plan Moderate Pay Rises as Inflation Pressures Ease but Persist 
U.S. Stock Futures Slip as Markets Brace for Big Tech Earnings and Key Data 
JPMorgan Lifts Gold Price Forecast to $6,300 by End-2026 on Strong Central Bank and Investor Demand 
Dollar Holds Firm as Strong U.S. Data, Fed Expectations and Global Central Bank Moves Shape Markets 
South Korea Inflation Hits Five-Month Low as CPI Reaches Central Bank Target 
Gold Prices Stabilize in Asian Trade After Sharp Weekly Losses Amid Fed Uncertainty 
RBA Raises Interest Rates by 25 Basis Points as Inflation Pressures Persist 
Trump Announces U.S.–India Trade Deal Cutting Tariffs, Boosting Markets and Energy Ties 
Starmer’s China Visit Highlights Western Balancing Act Amid U.S.-China Rivalry 
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.
