UBS Global Wealth Management has raised its rating for global stock markets to "attractive" due to several factors.

These include strong economic growth in the United States, monetary policies being eased by major central banks, and the growth of the artificial intelligence sector.

The MSCI World Index has seen a significant increase of 16.3% this year, driven by favorable economic conditions and proactive actions taken by central banks, particularly the Federal Reserve.

In the past, stock markets have typically responded positively to interest rate cuts within 6 to 12 months, despite a delay in the effects of monetary easing.

UBS also expects that additional stimulus measures from China, along with signs of economic recovery in other regions, will further support global markets.

The robust U.S. economy, supported by advancements in AI, a strong labor market, and low inflation, is anticipated to boost corporate earnings across various sectors, with technology leading the way.

However, UBS has identified potential short-term risks related to the upcoming U.S. presidential election, particularly if former President Donald Trump were to win, as markets could react quickly to potential trade risks.