HSBC Upgrades US Equities to Overweight on Earnings Beat, Cuts Europe ex-UK to Neutral

HSBC upgraded U.S. equities to 'overweight' from 'neutral' and downgraded Europe ex-UK to 'neutral' in its April 28 global strategy note, citing superior earnings momentum and easing Middle East risks. Roughly 30% of U.S. companies reported Q1 results, with 84% beating expectations by 12% on average, alongside $430 billion in S&P 500 buybacks YTD, up 20% YoY. The bank favors U.S. banks, insurers, and tech sectors amid Q2 seasonality, while warning of oil price and tech disappointment risks.