HSBC remains bullish on global equities, arguing that rising geopolitical tensions and fresh U.S. tariffs won't derail the underlying outlook. The bank points to markets' historical resilience and urges investors to focus on a wave of stimulus and growth-positive measures across major economies.

In the U.S., HSBC cites the One Big Beautiful Bill Act, potential $100bn in tax refunds, and plans to buy $200bn of mortgage bonds. Europe's fiscal spending has returned, with Germany's $150bn package, while Japan approved $135bn in stimulus and China continues with its $1.4trn debt package.

The bank adds that AI-driven productivity gains provide another powerful layer, with firms controlling labor costs as revenues accelerate. Strong Q3 sales forecasts and a surge in U.S. earnings revisions to their highest since 2009-10 further support the case for a broadening market performance.