Shanghai Securities News China Securities Network (Reporter Wang Youruo) On December 4, the Investment Chief Office (CIO) of UBS Wealth Management published an institutional viewpoint, suggesting that favorable conditions may continue to benefit global stock markets.

On one hand, a slowdown in the labor market has kept the Federal Reserve inclined towards an accommodative policy. Despite recent divergent remarks from Fed officials, policymakers will still rely on data for decision-making at next week's meeting. The latest data indicates that the Fed is more likely to cut interest rates by 25 basis points.

"We believe that whether the Fed cuts rates this month or waits until January next year, what changes is only the timing of the rate cut, not the overall accommodative bias or the ultimate target level of the federal funds rate. This is crucial for the medium-term investment outlook," UBS Wealth Management added.

On the other hand, the institution expects that with the support of fiscal policy measures such as targeted tax cuts, U.S. growth will re-accelerate in the second half of 2026. Fiscal stimulus and infrastructure investments in major developed economies worldwide may also contribute to accelerated growth, providing a favorable environment for risk assets. Strong earnings growth is expected to drive further gains in the stock market. UBS Wealth Management forecasts that earnings growth in major global markets next year will reach a solid level of 7% to 14%, supporting short-term upside.

"Therefore, as the current favorable environment extends into 2026, under-allocated investors may consider increasing their equity exposure. We are optimistic about U.S. technology, healthcare, utilities, and banking sectors, while European markets are expected to benefit from policy and structural growth. In the Asia-Pacific region, we favor Australia, Japan, and China, particularly China's technology sector," UBS Wealth Management stated.