Source: Wall Street See

UBS Group (UBS) raised its forecast for the MSCI Global Index from 800 points to 830 points by the end of 2024, according to Reuters on June 4th.

UBS stated that this adjustment is based on multiple factors such as the improvement of stock risk preference, optimism towards artificial intelligence, and the possibility of slowing down US wage growth.

The MSCI Global Index is an important benchmark for measuring the overall performance of global stock markets. UBS pointed out that the index is expected to rise by 6% by the end of this year.

Expectations of major central banks easing monetary policies, weak global economic data, and the excitement around artificial intelligence are supporting the global stock market this year.

In a report, UBS strategists stated, "The market seems to have responded more positively to weak data than we expected."

In particular, in the field of artificial intelligence, UBS pointed out that if generative artificial intelligence (GenAI) boosts productivity growth by 1% from 2028 onwards, the risk premium of stocks will reach 4.7%.

In addition, UBS believes that the global stock market will also benefit from several other key factors. These include revisions of corporate profits and expectations that the Federal Reserve may pause interest rate hikes. UBS stated that these factors will work together to further boost market confidence.

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