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2026-07-15 17:44:11
[What's the Confidence Behind European Stocks' Rebound? UBS Unveils Four Trump Cards: Semiconductors and Banks as Dual Drivers] ⑴ European stocks rose slightly on Tuesday, with ASML and Richemont Group rising 4% and 6% respectively after their earnings releases, boosting market sentiment. The STOXX 600 index edged up 0.1%, and US stock futures also rose slightly. ⑵ UBS released its latest bullish report, setting a target price of 690 points for the STOXX 600 index, representing an upside of approximately 7.5% from current levels, and listing four core reasons to support its optimistic assessment. ⑶ Firstly, earnings revisions for beneficiaries of AI capital expenditures remain strong, with semiconductor supply chain and data center construction-related companies becoming among the few bright spots in the European market, and UBS believes this trend is sustainable. ⑷ Secondly, the US manufacturing cycle is improving, with European companies directly benefiting through the industrial sector, while a weak euro provides indirect support. The process of shifting from destocking to restocking is expected to accelerate in the second half of the year. (5) Third, the banking sector's earnings continue to be revised upwards. Although financial stocks performed exceptionally well last year, UBS believes valuations remain attractive. The interest rate environment is significantly better than normal levels over the past decade, and the insurance and banking sectors will continue to benefit. (6) Fourth, previously underperforming sectors have stabilized and are no longer dragging down the index. The negative corrections in the consumer staples, luxury goods, and pharmaceutical sectors are narrowing. UBS expects the pharmaceutical sector to see an upward revision in earnings in the second half of the year.
