HSBC is out saying that it is downgrading US equities to a neutral rating while at the same time, upgrading European equities (excluding the UK) to overweight from underweight previously.

The firm cites that market players are pricing in a “mini earnings recession” in early 2025 as the reason for the downgrade. Meanwhile, the upgrade to European shares are largely driven by “game-changing” fiscal stimulus in the euro area – especially in Germany.

This article was written by Justin Low at www.forexlive.com.