HSBC Forecasts Continued Rally in Global Stock Markets, Prefers German Stocks

HSBC remains positive on global stock markets, citing US earnings prospects, a robust US economy, and expected interest rate cuts. They emphasize a preference for German stocks due to extensive fiscal incentives and infrastructure investments, which should lead to significant profit increases. The bank also sees potential in emerging markets due to lower valuations and prefers European stocks, excluding the UK.

HSBC (HSBC, Financial) has been downgraded from 'Buy' to 'Hold' by Jefferies analyst Joseph Dickerson, effective October 10, 2025 HSBC Downgraded to Hold by Jefferies Analyst | HSBC Stock News^[1]. This shift in rating reflects a more cautious outlook on the company's future performance, although it does not come with an updated price target or specific percentage change information. The downgrade suggests that while HSBC may still offer value, it might not outperform its peers in the near term.

Established in 1865, HSBC is one of the largest banks globally, with USD 3 trillion in assets and 40 million customers worldwide HSBC Downgraded to Hold by Jefferies Analyst | HSBC Stock News^[1]. The bank operates in over 50 countries and offers a wide range of financial services, including retail, commercial, and institutional banking, global banking and markets, wealth management, and private banking.

Despite the downgrade, HSBC remains optimistic about global stock markets. The bank cites positive US earnings prospects, a robust US economy, and expected interest rate cuts as reasons for its bullish stance. HSBC also emphasizes its preference for German stocks due to extensive fiscal incentives and infrastructure investments, which are expected to lead to significant profit increases Germany allocates €3 billion in semiconductor production subsidies for infrastructure maintenance.^[3].

Additionally, HSBC sees potential in emerging markets due to lower valuations and prefers European stocks, excluding the UK. However, the bank acknowledges the challenges posed by the semiconductor industry, with Germany having faced setbacks in its push for domestic microelectronics production Germany allocates €3 billion in semiconductor production subsidies for infrastructure maintenance.^[3].

Investors are advised to consider this new rating in light of their portfolios and investment strategies, keeping in mind the broader financial market context and any potential developments within HSBC's operational landscape.