UBS Global Wealth Management has revised its outlook on global equities to "attractive" from "neutral" due to several factors.

These factors include strong economic growth in the United States, monetary policy easing by major central banks, and advancements in artificial intelligence.

The analysts believe that the current economic environment and proactive actions by central banks create a favorable backdrop for continued market performance.

The MSCI's broad world equity index has increased by 16.3% this year, largely driven by interest rate cuts from central banks, including the U.S. Federal Reserve.

In the past, rate-cutting cycles have been positive indicators for equity markets in the following 6-12 months.

Furthermore, anticipated stimulus measures from China are expected to further boost global stock performance.

UBS emphasizes that corporate earnings are likely to benefit from the strong U.S. economy, supported by advancements in AI, robust labor markets, and a gradual decline in inflation.

The technology sector is projected to be the primary driver of earnings growth, although other sectors are also expected to contribute.

However, there are potential risks associated with the upcoming U.S. elections, particularly if former President Donald Trump is re-elected.

This could lead to market volatility due to concerns about tariffs.