The Swiss bank dismissed an escalation of commercial and war tensions in the Middle East, after the truces on both fronts.
The Swiss Financial Services Society UBS provides for a recovery of US actions during the second semester and raised the price of S&P 500 By the end of the year, by dismissing an escalation of the Commercial tensions between the US and Chinaas well as War in the Middle East After the treguas agreed on both fronts.
In a note for its clients, in which it adopts a “neutral” vision on US variable income assets, UBS strategists predicted that the next season of presentation of corporate results of the second quarter It will probably be “resilient” to these aspects, while the tax and expenses package currently advances in the Congress It would boost companies cash flows.
In that sense, they raised their estimate of benefit per share of the S&P for 2025 au $ 265, which implies a growth of 6%. In turn, by 2026, the figure increased AU $ S285, that is, an expansion of 7.5% is expected compared to the previous year, according to Investing.
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Reuters
At the same time, the objectives for the S&P 500 index Reference also increased to 6,200 points by the end of 2025 and 6,500 points by June 2026. Last Thursday, the average closed at 6,141.02 and remained near new historical maximums, although it experienced strong turbulence earlier this year.
“US actions continue to recover from the massive sale induced by tariffs in March and April,” UBS analysts said, and added: “We believe that recovery makes sense, considering that most of the large capitalization companies should fall from tariffs reasonably well.”
Donald Trump’s market and tariffs
However, they pointed out that the actions could still experience upward volatility or decline in the coming months, while traders react to events related to aggressive reciprocal tariffs of the president Donald Trumpwith the last post that expires in early July.
For their part, analysts indicated that the products affected by other tariffs currently in force will soon reach store shelves, which possibly causes “a deceleration in economic growth and a rebound in inflation during the summer.” “Although investors are already waiting for this result, any weakening in the data beyond expectations could be an obstacle to US actions,” they said.
The recent agreement between the US and China seems to bring a renewed relief to global markets.
Source: Ambito
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