MILAN (Reuters) – The wealth management arm of Swiss bank UBS has downgraded euro zone equities to neutral citing the potential for negative economic and earnings growth revisions amid growing uncertainty following Russia’s invasion of Ukraine.
As a result, it shifted its tactical stance on global equities to neutral from most preferred, while it still likes Chinese stocks relative to other Asian markets and holds a most preferred view on global energy equities and the U.S. dollar.
“Historically, geopolitical events—even those that have changed the course of history—have rarely left a long-lasting mark on markets. This speaks to maintaining long-term exposure to equities. But with markets volatile and outcomes uncertain, we believe investors should now review portfolio allocations,” it said.
(Reporting by Danilo Masoni; Editing by Saikat Chatterjee)
