UBS: Expects short-term consolidation in global stock markets, with rising probability of mid-term bubbles

The UBS Global Equity Strategy Team expects that global stock markets will experience consolidation in the short term, but there is still upward potential in the medium term, with an increasing probability of bubbles. Zhang Ning pointed out that the economic fundamentals are diverging from stock market performance, and the market has not fully reflected tariff concerns. The U.S. stock market is supported by company buybacks and pension fund purchases, with expected positive earnings growth. The target prices for European stock markets are set at 550 points and 590 points, and investors are advised to avoid sectors affected by tariffs and a strong euro. Emerging markets face downside risks that have not yet been factored into stock prices