{"id":96554,"date":"2026-08-03T17:49:31","date_gmt":"2026-08-03T17:49:31","guid":{"rendered":"https:\/\/www.europesays.com\/britain\/96554\/"},"modified":"2026-08-03T17:49:31","modified_gmt":"2026-08-03T17:49:31","slug":"hsbc-remains-bullish-on-equities-after-sentiment-sell-signal-disappears","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/britain\/96554\/","title":{"rendered":"HSBC Remains Bullish on Equities After Sentiment Sell Signal Disappears"},"content":{"rendered":"

\"Chart<\/a> Chart going up \u00a9Adobe Stock Images <\/p>\n

HSBC believes recent weakness across risk assets has largely run its course and says improving market sentiment continues to support additional gains for global equities. <\/p>\n

Chief Multi-Asset Strategist Max Kettner said that despite a series of disruptive events over the past two months, equity markets have demonstrated impressive resilience. <\/p>\n

Multiple Shocks Failed to Derail Global Markets <\/p>\n

The bank highlighted a number of significant developments, including a $30 increase in oil prices after tensions escalated in the Middle East, a 40% decline in Asian memory stocks, sharp losses among momentum shares and a 50% retreat in SpaceX’s share price from its intraday high. <\/p>\n

“And, yet, nothing has happened,” Kettner wrote, noting that global equity markets remain only about 1% below the record levels reached in early June. <\/p>\n

Strong Earnings Offset Economic Concerns <\/p>\n

HSBC argued that investors have become considerably more cautious on economic growth while continuing to underestimate corporate earnings. <\/p>\n

The bank noted that 12-month forward earnings estimates for the S&P 500 have increased by another 5.5% over the past year, supported by a broad-based second-quarter earnings season. <\/p>\n

It also pointed to more reasonable equity valuations, with the forward price-to-earnings ratio now roughly two turns below the 21.5 multiple seen before the Middle East conflict intensified. <\/p>\n

Positive Positioning Remains Intact <\/p>\n

HSBC believes higher bond yields have reduced the impact of rising oil prices on equities and suggested that a further reversal of “U.S. exceptionalism” could make lower yields supportive for stock markets. <\/p>\n

The bank also said the recent decline in hyperscaler debt “masks lower issuance and strength elsewhere.” <\/p>\n

HSBC continues to recommend a “max OW equities” allocation, while favoring high-yield debt and emerging-market credit over U.S. Treasuries, Japanese government bonds and oil. <\/p>\n

The bank said the disappearance of its sentiment-based sell signal reinforces its expectation that global equities can continue moving higher. <\/p>\n","protected":false},"excerpt":{"rendered":"Chart going up \u00a9Adobe Stock Images HSBC believes recent weakness across risk assets has largely run its course…\n","protected":false},"author":2,"featured_media":96555,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[20667],"tags":[7077,25756,6118,9881,6728,39353],"class_list":["post-96554","post","type-post","status-publish","format-standard","has-post-thumbnail","category-hsbc","tag-oil-prices","tag-equity-markets","tag-global-equities","tag-hsbc","tag-market-sentiment","tag-max-kettner"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@UnitedKingdom\/117032842948013723","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/96554","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/comments?post=96554"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/96554\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media\/96555"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media?parent=96554"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/categories?post=96554"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/tags?post=96554"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}