HSBC maintains maximum overweight on equities, focusing on emerging market Asia, Japan and Europe, especially European banks sector overall.
Bank says marginal improvement in Middle East tensions suffices, deeming geopolitical fears overdone and not essential for market recovery.
HSBC highlights strong US labor data, tax refunds 15% above 2025 levels, and warns Treasury yields above 4.3% as a danger zone.
Pessimism on AI has erased US tech valuation premium, prompting expected rotation back into US and tech stocks with a V‑shaped rebound.