Goldman Sachs Raises Global Stock Outlook on Strong Earnings

Goldman Sachs has raised its outlook on world stocks from neutral to overweight. Strong earnings growth and better valuations ahead of the upcoming earnings season drove this change. At the same time, the bank warned that higher interest rates and energy prices could still cause risks for equity markets. The bank remains positive about markets in Asia and the United States. However, it stays underweight on Europe.

Context

Investment banks regularly review global stock markets to help clients decide where to put their money. An overweight rating means the bank expects those shares to perform better than the overall market average.