UBS research report states that if the Middle East conflict is diplomatically resolved, investors will refocus on economic and earnings fundamentals, and global and U.S. stocks remain attractive. U.S. stocks' Q1 earnings are optimistic, with EPS growth of about 17%, the fastest since Q4 2021. Long-term ceasefires remain difficult, and the energy market recovery will take time, so Brent crude oil price forecasts have been raised from $90 per barrel to $100 per barrel, and ratings for energy-sensitive markets like the Eurozone and India have been downgraded to neutral.

MeNews

2026-05-21 02:22:18

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ME News Report, April 17 (UTC+8), UBS's research report on April 16 pointed out that based on the bank's baseline scenario, the final diplomatic solution to the Middle East conflict will enable investors to once again focus on healthy economic and earnings fundamentals. The bank stated that during the escalation of the Middle East crisis, it has consistently believed that global and U.S. stock markets remain attractive. The bank expects the first quarter earnings season for U.S. stocks to perform strongly, highlighting an optimistic outlook for corporate profits, with earnings per share expected to grow 17% this quarter, the fastest pace since Q4 2021. However, the bank also anticipates that the long-term ceasefire in the Middle East will be fraught with difficulties, and even if shipping through the Strait of Hormuz resumes, it will take time for the global energy markets to return to normal. Therefore, we recently raised our Brent crude oil price forecast for the end of June from the previous $90 per barrel to $100 per barrel. Considering the outlook for the energy market, stocks most sensitive to high fuel costs—including the Eurozone and India—have become more cautious, and their ratings have been downgraded from "Attractive" to "Neutral." (Jin10) (Source: ODAILY)

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PixelMetaverseRaccoon

· 14h ago

Diplomatic resolution is easy to say in four words, hard to do; let's see if the market believes it first.

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GateUser-9335da8b

· 14h ago

Q1 profit growth of 17% is indeed impressive, but can the Middle East's powder keg really be extinguished just like that?

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LonelyStoneUnderTheAurora

· 14h ago

India has also been downgraded? Weren't they previously considered a darling of emerging markets?

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GlassDomeBaskingInMoonlight

· 14h ago

Downgrade of the Eurozone rating was expected, with a double hit from energy dependence and weak manufacturing.

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YieldGoblin

· 14h ago

The fundamentals of U.S. stocks can hold up, but the valuations aren't cheap either, I'm torn.

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GweiGossip

· 14h ago

The outlook for Brent at 100 is a bit aggressive, but the energy sector indeed deserves some adjustment.

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TideEarningsTable

· 14h ago

UBS's report is quite interesting, praising US stocks while being bearish on European and Indian markets, raising oil price forecasts to $100, will energy stocks take off?

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UBS: Investors will shift their focus from Middle East issues to economic and earnings fundamentals; U.S. stocks remain attractive

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