UBS Global Wealth Management is predicting that the Federal Reserve will implement four interest rate cuts, which would indicate a significant change in monetary policy.

This is expected to have a notable impact on European markets, leading UBS to advise reducing exposure to these regions.

Kelvin Tay, a representative from UBS, further explained the potential trajectory of rate cuts and the implications for investors.

UBS's guidance is based on adapting to evolving economic conditions and emphasizes the importance of being cautious when investing in European markets due to the Fed's adjustments to its monetary stance.