HSBC raised its stance on US equities to overweight from neutral, highlighting strong corporate earnings growth in the technology and consumer sectors alongside reduced geopolitical headwinds. The upgrade reflects the bank’s view that US stocks offer superior return potential given resilient business performance and macro stability.

The bank lowered its rating on Europe ex-UK to neutral due to sluggish GDP expansion, elevated inflation and ongoing policy uncertainty. HSBC flagged weaker business sentiment and declining consumer confidence as key factors limiting upside in European markets.