Goldman turns overweight on global equities on earnings optimism
In short
Goldman Sachs said global stocks look better and raised its view from neutral to overweight. It pointed to strong earnings growth and cheaper valuations before the next earnings season, and said it still likes Asia and the US more than Europe.
The bank also warned that higher rates and energy prices could hurt shares. It is not stated how markets moved after the call.
What the reporting says
Goldman Sachs upgraded its view on global equities from neutral to overweight, citing strong earnings growth and more attractive valuations ahead of the coming earnings season. The bank also warned that higher rates and energy prices could pressure markets. It remains bullish on Asia and the US while staying underweight Europe, but the source does not say how long the call will last or what market reaction followed.
Why it matters
Goldman Sachs changed its global equities stance from neutral to overweight, based on reported earnings strength and more attractive valuations before the next earnings season. The call favors Asia and the US and stays cautious on Europe. The note also flags higher rates and energy prices as risks for equity markets. The source does not provide a date for the change, the size of any expected gains, or any immediate market move.