Here’s why HSBC remains bullish on global stocks

Investing.com -- HSBC is staying firmly positive on global equities, arguing that rising geopolitical tensions and fresh U.S. tariffs do not alter the underlying outlook.

“We continue to be bullish on global equities,” the bank wrote in a note on Wednesday, adding that markets have “shown time and again their resilience to geopolitics.”

Instead, HSBC urges investors to focus on what it sees as the “growing prospects of a wave of stimulus and growth-positive measures.”

The bank highlights a “powerful” mix of economic support across major regions.

In the United States, HSBC points to the One Big Beautiful Bill Act, the potential for “USD100bn (+20%) more individual tax refunds,” and the possibility of “USD2,000 tariff ‘stimulus checks.’” It also cites plans to buy “USD200bn of mortgage bonds to lower rates,” an “unprecedented AI capex boom,” and President Trump’s call for “a one year 10% cap on credit card interest rates.”

But the backdrop extends beyond the U.S. HSBC notes that “Europe’s fiscal spending is back on,” with Germany’s record $150bn investment package, while Japan has approved $135bn of stimulus. China, meanwhile, “continues to pull levers” through its $1.4trn debt package, $70bn in policy financing and expected consumption subsidies.

HSBC says AI-driven productivity gains add “another powerful layer,” with companies able to control labour costs while revenues accelerate. The bank flags that WARN notices have jumped and that 75% of firms beat sales forecasts in Q3, supporting expectations for an 8% revenue growth rate in Q4-25.

A surge in U.S. earnings revisions to the highest level since 2009-10, and “strikingly strong” corporate guidance are also said to strengthen the case. Against this backdrop, HSBC argues the best positioning is through “a broadening in market performance.”

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