European stocks are finally showing signs of life, with analysts at UBS highlighting a stronger and more reliable earnings backdrop than investors have seen in years.

With valuations still trading at a discount compared to US peers, the stage is set for select European names to deliver outsized returns.

To UBS experts, two stand out in particular with potential for over 50% return in 2026: Trustpilot and EasyJet.

Each represents a different corner of the EU’s corporate landscape – yet all have one thing in common: meaningful upside as earnings momentum builds this year.

Trustpilot: a misunderstood SaaS gem with AI tailwinds

Trustpilot, the online review platform, has been battered by skepticism – but a senior UBS analyst believes the market is missing the bigger picture.

In a recent note to clients, Hai Huynh pointed to “mid-to-high teens top-line growth, scalable SaaS model, potential to double margins over time” as reasons to load up on TRST stock this year.  

Trustpilot’s cash generation remains strong, and its willingness to return excess funds to investors makes its stock all the more exciting as a long-term holding, he added.

In his research report, Huynh dubbed Trustpilot a rare European tech play with both “growth” and “profitability” in sight.

“Misunderstood narratives” have hurt shares, but catalysts such as AI-powered review verification, data monetization, and the absence of direct competition could flip sentiment in 2026, he concluded.

With fiscal year 2025 results due in March, investors may soon see whether Trustpilot shares can silence its critics and prove itself as one of Europe’s most overlooked growth stories.

EasyJet: flying higher despite economic turbulence

Budget airline EasyJet has endured its share of headwinds – from Brexit uncertainty to pandemic-era travel restrictions, but UBS sees brighter skies ahead.

Analyst Jarrod Castle describes it as a “well capitalised company with an investment grade balance sheet,” a rare strength in the airline sector.

Passenger volumes are expected to rise, while package holidays continue to gain traction, creating a dual engine for profit growth.

The challenge, Castle warns, lies in the “UK economic backdrop and intense capex programme,” which could weigh on investor sentiment.

Still, with leisure travel demand proving resilient and EZJ positioned to capture market share, the airline stock looks set to benefit from Europe’s recovery.

EasyJet’s full-year results, due at the end of January, will be closely watched for signs of momentum.

Note that the airline stock currently pays a healthy dividend yield of 2.80%, which makes it even more attractive to own for income-focused investors in 2026.

Other Wall Street analysts seem to agree with UBS on EasyJet stock as well, given the consensus rating on the Luton-headquartered low-cost air carrier sits at “overweight” at the time of writing.

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The ASX 200 Index retreated in the last two consecutive days, while the AUD/USD exchange rate rose to the highest level in years after the latest Australian consumer inflation report. The index retreated to A$8,925 from the year-to-date high of A$8,990.

On the other hand, the AUD/USD exchange rate jumped to a high of 0.7010, its highest level since February 2023. It has jumped by over 18% from its lowest level in April last year.

Odds of RBA interest rate hike jump as Australian inflation jumps 

The ASX 200 Index dropped, and the AUD/USD exchange rate rose after the Australian Bureau of Statistics (ABS) showed that Australia’s inflation continued rising in December, raising the possibility that the Reserve Bank of Australia (RBA) will hike interest rates in the upcoming meeting.

The report showed that the headline CPI rose from 0% in November to 1.0% in December, higher than the analysts’ estimate of 0.7%. 

This growth led to an annual increase of 3.8%, higher than the November inflation of 3.4% and the median estimate of 3.6%.

More data showed that the quarterly trimmed mean CPI rose from 3% to 3.4%, while the weighted mean inflation rose to 3.6%. All these numbers are much higher than the RBA target of 2.0%.

The report came a week after the agency published strong jobs numbers. A report showed that the unemployment rate dropped to 4.1% as the economy created over 54.5k jobs. The participation rate rose to 66.7% from the previous 66.6%.

Therefore, a combination of strong job numbers and high inflation is conducive to an interest rate hike. This explains why Australian bond yields continued rising, with the ten-year yield rising to 4.89%, its highest level since November 2023. Also, the five-year yield rose to 4.47% from last year’s low of 3.416%.

An RBA interest rate hike would be highly bullish for Australian banks, which explains why their stocks continued rising. Top banks like Westpac, ANZ, Commonwealth Bank, and NAB have done well in the past few weeks.

ASX 200 Index technical analysis 

The daily timeframe chart shows that the ASX 200 Index has been in a strong uptrend in the past few weeks, moving from a low of $8,377 to a high of $8,985.

It has formed an ascending channel, and recently retested its upper side. A closer look shows that the index formed an evening star candlestick pattern. A morning star is made up of a small body, a small upper, and small lower shadow.

The Relative Strength Index (RSI) has continued moving downwards, moving from a high of 68 on January 26 to the current 63.

Therefore, the most likely ASX 200 Index forecast is bearish, with the next key support level being at $8,820, the lower side of the ascending channel.

AUD/USD forecast: Technical analysis 

The three-day timeframe chart shows that the AUD/USD exchange rate has been in a strong uptrend in the past few months, moving from a low of 0.5915 in April last year to a high of 0.7020.

It crossed the important resistance level at 0.6900, its highest level in September 2025. The pair has remained above the 50-day and 100-day Exponential Moving Averages (EMA).

It moved above the Ultimate Resistance level at 0.6835 and the overshoot level at 0.6958.  It also formed an inverse head-and-shoulders pattern.

Therefore, the most likely scenario is where the AUD/USD pair continues rising as bulls target the key resistance level at 0.7100.

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Amazon employees were left unsettled on Tuesday after an internal email referencing “organizational changes” and “impacted colleagues” was sent prematurely, fueling concerns that another round of corporate layoffs is imminent.

The message, which appears to have been recalled shortly after being sent, comes as the company prepares to report fourth-quarter earnings next month and continues to reshape its workforce amid cost-cutting and a broader push to streamline management.

Premature email sparks internal concern

The email was sent by Colleen Aubrey, senior vice president of applied AI solutions at Amazon’s cloud unit, Amazon Web Services, and was viewed by both CNBC and Bloomberg.

The note acknowledged “organizational changes” and said that “impacted colleagues” had been notified, referencing a separate post from Amazon’s human resources chief, Beth Galetti, that does not appear to have been send.

“Changes like this are hard on everyone,” Aubrey wrote. “These decisions are difficult and are made thoughtfully as we position our organization and AWS for future success.”

The subject line of the email referred to “Project Dawn,” and Bloomberg reported that it included a meeting invite for Wednesday morning that was later canceled.

The email also stated that affected employees were based in the United States, Canada, and Costa Rica.

It remains unclear what “Project Dawn” refers to.

The message quickly circulated on internal message boards and social media platforms such as Reddit, where employees shared speculation about the scope and timing of potential job cuts.

Layoffs expected as restructuring continues

The premature email aligns with expectations that Amazon is preparing to announce widespread layoffs across its corporate workforce as soon as this week, according to a person familiar with the matter who previously spoke to CNBC.

Amazon’s cloud computing and retail stores units are among the divisions expected to be affected.

The anticipated cuts follow a major restructuring announced in October, when Amazon said it would lay off 14,000 corporate employees.

At the time, the company warned that reductions would continue into 2026 as it identified “additional places we can remove layers.”

Chief executive Andy Jassy has framed the layoffs as part of a broader effort to reduce bureaucracy and management layers across the company.

He also said last June that efficiency gains driven by artificial intelligence would likely shrink Amazon’s corporate workforce over the coming years.

Those comments have taken on renewed significance as AI becomes increasingly central to Amazon’s strategy, particularly within AWS, even as the company looks to rein in costs.

Grocery overhaul adds to employee uncertainty

The workforce concerns emerged on the same day Amazon announced a reorganization of its grocery business.

The company said it plans to shutter its Fresh supermarkets and Go convenience marts, shifting its focus toward Whole Foods stores and online grocery delivery.

In a memo to staff, Amazon’s top grocery executive, Jason Buechel, said the company needs to make more “deliberate choices” to better compete for customers.

He also outlined additional restructuring steps, including plans to appoint a new “grocery quality” leadership role.

Together, the grocery overhaul and the apparent misfire around “Project Dawn” underscore the scale of change underway at Amazon as it enters 2026.

While management has emphasized thoughtful decision-making and long-term positioning, the premature email has heightened anxiety among employees already bracing for further job cuts.

Amazon is scheduled to report fourth-quarter earnings after the bell on Feb. 5.

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The FTSE 100 Index continued its recent rally this week, helped by the ongoing bank and mining stocks gains. It jumped to a high of £10,208 on Tuesday, up by 35% from its April 2025 lows, as focus now shifts to the UK and Chinese relationship and the upcoming Bank of England decision.

Keir Starmer’s trip to China

The FTSE 100 Index continued rising this week as Prime Minister Keir Starmer traveled to China to meet President Xi Jinping.

Starmer, like Canada’s Mark Carney, is aiming to reset the trade relationship with Beijing as concerns about the reliability of the United States remain.

Market participants are anticipating some agreements that may benefit companies in the FTSE 100 Index during this trip. For example, it is likely that Chinese companies will place orders for Rolls-Royce engines and other products.

The other main catalyst for the FTSE 100 Index will come out later on Wednesday when the Federal Reserve concludes its first monetary policy meeting of the year. 

Economists are in agreement that the bank will leave interest rates unchanged between 3.50% and 3.75%. However, Jerome Powell’s press conference will have an impact on markets because it will be the first meeting since the grand jury subpoenas.

The FOMC decision comes a week before the Bank of England (BoE) delivers its first decision of the year. Economists expect the bank to leave interest rates unchanged after last week’s macro data.

The numbers showed that the country’s retail sales rose in December because of the Christmas season. Another report showed that the headline and core inflation remained steady above the BoE’s 2% in December last year. Therefore, the bank has no room to cut interest rates in this meeting. 

The FTSE 100 Index will react to the upcoming Magnificent 7 earnings, which will come out later today when companies like Microsoft, Meta Platforms, and Tesla release their earnings. While these are American companies, they often have an impact on global equities.

Lloyds Bank, the most actively traded company in the FTSE 100 Index will publish its financial results on Thursday, providing color about the banking sector. Its results come as UK bank stocks rise, with HSBC becoming the first European bank to hit a $300 billion market cap.

More FTSE 100 Index companies will publish their financial results next week. The most notable ones will be GSK, Shell, Unilever, and Beazley. Beazley’s numbers will be important as they come as Zurich continue its £7 billion pursuit.

FTSE 100 Index technical analysis 

The three-day timeframe chart shows that the FTSE 100 Index continued its strong rally this month and is now trading at its all-time high. It has jumped above the ultimate resistance level of the Murrey Math Lines tool at £10,000.

The index has jumped above the 50-day and 100-day Exponential Moving Averages (EMA), while the Relative Strength Index (RSI) has jumped above the overbought level.

Therefore, the most likely scenario is where the FTSE 100 Index continues rising, with the next key target being the extreme overshoot at £10,625.

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Global markets delivered a mixed picture on Wednesday, with Asia-Pacific stocks diverging from Wall Street’s record-setting close, commodities surging to fresh highs, currencies swinging on US dollar weakness, and corporate uncertainty resurfacing at Amazon after a prematurely sent internal email fueled layoff fears.

Asian markets mixed as Wall Street hits record

Asia-Pacific markets traded mixed, breaking ranks with the US after the S&P 500 closed at a record high overnight.

The benchmark rose 0.41% to 6,978.60, supported by gains in Apple and Microsoft.

The Nasdaq Composite climbed 0.91%, while the Dow Jones Industrial Average fell 0.83%, shedding 408.99 points to end at 49,003.4.

In Asia, South Korea’s Kospi and Kosdaq extended their rally, gaining 1.63% and 3.64% respectively to push further into record territory.

Hong Kong’s Hang Seng Index rose 2.37%, led by energy stocks, while China’s CSI 300 gained 0.52%. India’s Nifty 50 added 0.51%.

Japan underperformed, with the Nikkei 225 falling about 0.41% and the Topix down 0.72%, dragged by basic materials stocks.

Australia’s S&P/ASX 200 reversed earlier gains and slipped 0.08%, snapping a three-day winning streak, after headline inflation came in at 3.6% in the final quarter of 2025, the highest level in six quarters.

US stock futures were near flat in Asian hours as investors awaited the Federal Reserve’s policy decision and earnings reports from major technology companies.

US dollar slides as policy signals unsettle FX markets

Currency markets were dominated by sharp moves in the US dollar, which paused on Wednesday after a selloff that pushed it near four-year lows.

The euro climbed above $1.20 for the first time since 2021, while the Australian dollar rose above $0.70 to a three-year high.

The yen touched 152.08 per dollar, its strongest level in almost three months, amid expectations of possible intervention, before the dollar clawed back to around 152.76 yen in Asian trade.

The selloff has been exacerbated by political and policy uncertainty.

President Donald Trump said the dollar’s value is “great” when asked whether the global reserve currency had fallen too much.

Steve Englander, head of global G10 currency research at Standard Chartered, said: “Often officials push back against abrupt currency moves, but when the President expresses indifference or even endorses the move, it emboldens USD sellers to keep pushing.”

The Federal Reserve is widely expected to keep rates steady at 3.5% to 3.75%, with markets focused on guidance and questions around policy independence.

Gold and metals surge to fresh records

Gold prices surged to record highs as the weaker dollar and geopolitical concerns boosted demand.

Spot gold jumped 1.1% to $5,261.4 an ounce at the time of writing.

US gold futures for February delivery surged 3.4% to $5,293.75.

“(Gold’s rise) is due to the very strong indirect correlation with the dollar,” said Kelvin Wong, a senior market analyst at OANDA, adding that recent gains followed remarks implying support for a weaker greenback.

Other precious metals followed suit.

Spot silver rose 1.9% to $115.11 an ounce, platinum gained 2% to $2,692.60, and palladium climbed 1.4% to $1,961.68.

Deutsche Bank said this week that gold could climb to $6,000 per ounce in 2026, citing persistent investment demand.

Amazon employees unsettled by premature email

Corporate news was led by Amazon, where employees were rattled after an internal email referencing “organizational changes” and “impacted colleagues” was sent prematurely and later recalled.

The email, from Colleen Aubrey, senior vice president of applied AI solutions at Amazon Web Services, appeared to confirm impending layoffs.

“Changes like this are hard on everyone,” Aubrey wrote. “These decisions are difficult and are made thoughtfully as we position our organization and AWS for future success.”

The message referenced “Project Dawn,” included a meeting invite that was later canceled, and said affected employees were based in the US, Canada and Costa Rica.

It remains unclear what the project refers to.

The incident comes as Amazon is expected to announce further corporate layoffs following the elimination of 14,000 roles in October, and as it restructures its grocery business.

The company is due to report fourth-quarter earnings on Feb. 5, which may offer more clarity on its strategy and workforce outlook.

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Gold’s blistering run is likely to continue as prices breached the $5,200 per ounce mark on Wednesday for the first time in history. 

Meanwhile, silver prices on COMEX also climbed above $116 per ounce for the first time earlier on Wednesday as the white metal continued its record-shattering run. 

Experts believe that both metals have more room for upside due to gold’s safe-haven appeal and silver’s industrial demand. 

On Wednesday, gold prices rose sharply over 3% as the dollar fell to a near four-year low amid geopolitical tensions. 

At the time of writing, gold prices on COMEX were at $5,294.35 per ounce, up 3.4%, while silver was at $115.480 per ounce.

Gold had touched a record high of $5,297.86, and is looking to breach the $5,300 level. 

Market forces driving gold and silver’s ascent

A decision by the US Federal Reserve on monetary policy is also awaited later on Wednesday. 

The US dollar faced a “crisis of confidence,” selling off sharply and hovering near four-year lows. 

The decline was amplified after US President Donald Trump, when questioned about the dollar’s possibly excessive decline, responded by calling the currency’s value “great.”

Amid growing concerns about a weak job market and elevated prices, US consumer confidence dropped to its lowest point in over 11-1/2 years in January.

Meanwhile, Trump said he will soon announce the new head of the US central bank, predicting that interest rates would decrease following the new chair’s appointment.

The Federal Reserve is widely anticipated to keep rates unchanged at its ongoing January monetary policy meeting, which is scheduled to conclude later on Wednesday.

“Even though short-term pullbacks may happen, gold continues its upward trend. Investors who entered the market this year are very likely to see it reach new highs and approach $5,500 in the near future,” Alex Tsepaev, chief strategy officer of B2PRIME Group, said. 

The present moment is characterised by extreme unpredictability and rapid change. 

Concurrently, the market is experiencing an accelerated trend toward de-dollarisation, sustained demand from developing nations, and ongoing global monetary expansion, Tsepaev said.

There is also the issue of US debt sustainability and growing geopolitical tensions, such as new tariffs or the purchase of Greenland.

Add to that the pressure on the Fed, and we have support for interest in gold as a safe-haven asset. 

Gold as safe-haven vs. silver’s industrial link

Gold is expected to remain the favored alternative safe-haven asset.

Its strong preference stems from its long-established role as a store of value and its institutional independence.

“This means that it is not exposed to counterparty risk. The same applies in principle to silver, which is why it has recently risen significantly in the wake of gold,” Thu Lan Nguyen, head of FX and commodity research at Commerzbank AG, said in a report. 

Unlike gold, however, silver has not traditionally served as a safe haven, which is why the price increase could be on shakier ground. 

The demand for silver, unlike gold, experiences stronger fluctuations tied to economic conditions because of the white precious metal’s high industrial use.

The near-quadrupling of silver’s price since the start of 2025 is expected to negatively impact industrial demand for the metal, according to Nguyen.

On the other hand, however, the physical silver market has been quite tight in recent years.

Ultimately, the continuation of the precious metals market rally will hinge on geopolitical developments.

Geopolitics and monetary policy

A significant market correction, characterised by a broad price decline, could be triggered by a shift in global geopolitical dynamics.

Commerzbank has listed four such scenarios, which include the following;

Specifically, a credible de-escalation or end to major ongoing conflicts, such as the war in Ukraine, followed by the lifting of related Western sanctions against Russia, would remove a key source of current market uncertainty and volatility, Nguyen noted. 

This move towards stability could prompt a re-evaluation of risk premiums and economic forecasts, potentially leading to a sharp market adjustment, she added.

Furthermore, a return to greater global cooperation and multilateralism could also act as a catalyst for a correction. 

This would involve the reversal of current trade barriers, particularly the reduction or removal of US tariffs, and a renewed, clear commitment to established international agreements concerning both trade and security. 

Alongside this, governments globally would need to adopt and implement credible fiscal consolidation measures aimed at stabilizing or significantly reducing high levels of public debt. 

These combined factors would signal a fundamental change in the long-term risk and reward calculation for investors.

Finally, the independence and action of the US Federal Reserve are paramount. 

A market correction could occur if the US Federal Reserve resists political pressure, such as from Trump, to implement significantly lower interest rates.

Maintaining a policy stance based on economic fundamentals, rather than political expediency, could lead to tighter monetary conditions than the market is currently pricing in, thus triggering a downward move in asset prices.

“Given the high level of uncertainty regarding further political developments and the current dynamics, it is virtually impossible to make a reliable price forecast,” Nguyen said. 

We see room for further price increases, primarily due to our expectation of a significantly more expansionary US monetary policy. 

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China has approved its first imports of Nvidia’s H200 artificial intelligence chips, Reuters reported, citing two people familiar with the matter, in a sign Beijing is recalibrating its stance as it weighs rising AI demand against efforts to boost domestic development.

The approvals cover several hundred thousand H200 chips and were granted during Nvidia chief executive Jensen Huang’s visit to China this week, according to two people familiar with the matter cited by Reuters.

The sources asked not to be identified because of the sensitivity of the issue.

Initial approvals favour three Chinese tech companies

The first batch of import clearances has been allocated mainly to three major Chinese internet companies, with other firms now lining up for subsequent approvals, one of the sources said.

The companies that received the initial green light were not named.

Last week, Bloomberg reported that Chinese regulators had given in-principle approval to companies including Alibaba, Tencent Holdings and ByteDance to move to the next stage of preparations for potential purchases of Nvidia’s H200 chips.

“The companies are now cleared to discuss specifics such as the amounts they would require, the people said, asking to remain unidentified, discussing private talks. Beijing will encourage companies to buy a certain amount of domestic chips as a condition for approval, according to the people, though no exact number has been set,” the report had said.

China’s industry and commerce ministries, as well as Nvidia, had not responded to requests for comment at the time of publication.

A sensitive chip in a fraught relationship

The H200, Nvidia’s second most powerful AI chip, has become a focal point in US-China technology relations.

While Washington earlier this month formally cleared the way for Nvidia to sell the chip to Chinese customers, shipments still required approval from Chinese authorities.

Until now, Beijing’s hesitation had been the main obstacle to imports, despite strong demand from Chinese firms.

Chinese customs authorities had previously told agents that H200 chips were not permitted to enter the country, Reuters reported earlier this month.

That uncertainty has contrasted sharply with market demand.

Chinese technology companies have placed orders for more than 2 million H200 chips, far exceeding Nvidia’s available inventory, according to a Reuters report last month.

Balancing AI ambitions and self-reliance

The approvals suggest Beijing is prioritising the needs of large internet companies that are spending billions of dollars on data centres to develop AI services and compete with US rivals such as OpenAI.

Access to cutting-edge hardware is seen as critical for training and running large AI models at scale.

While Chinese chipmakers, including Huawei, have developed products that rival Nvidia’s H20 chip — previously the most advanced processor Nvidia was allowed to sell to China — they remain well behind the H200.

Nvidia says the H200 delivers roughly six times the performance of the H20.

Even so, Beijing has discussed making approvals for foreign chip imports conditional on companies buying a certain quota of domestic semiconductors, a policy aimed at supporting local manufacturers and reducing long-term dependence on overseas technology.

What comes next remains unclear

It is uncertain how many additional companies will receive approval in later batches or what criteria regulators are using to decide eligibility.

Huang arrived in Shanghai last Friday for routine annual events with Nvidia’s China staff and has since travelled to Beijing and other cities, underscoring the importance of the Chinese market to the company.

For now, the limited approvals highlight Beijing’s careful balancing act between accelerating AI development and reinforcing its push for technological self-reliance.

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ASML’s latest results underline how deeply artificial intelligence spending is reshaping the semiconductor supply chain.

The Dutch chip equipment maker reported a sharp jump in orders and issued stronger-than-expected guidance for 2026, signalling that demand from chipmakers building AI capacity remains resilient.

Investors tend to focus on bookings as a forward indicator, and the latest figures point to an acceleration in customer spending plans rather than a pause.

Alongside the guidance upgrade, ASML also unveiled a sizeable share buyback, reinforcing confidence in its longer-term cash generation.

Record bookings lift visibility

Orders in the fourth quarter of 2025 reached 13.2 billion euros, more than double the level analysts had expected.

The figure marked a record quarter for the company and stood out against a backdrop of uneven conditions across parts of the global chip industry.

Financial performance for the quarter was broadly in line with expectations.

Net sales came in at 9.7 billion euros, just above forecasts, while net profit of 2.84 billion euros fell slightly short of consensus.

2026 sales guidance improves

ASML said it expects net sales in the current quarter to range between 8.2 billion and 8.9 billion euros.

More significantly, it forecast total sales for 2026 of between 34 billion and 39 billion euros.

The midpoint of that range sits above analyst estimates and suggests growth compared with 2025.

Earlier commentary had indicated that 2026 revenue was not expected to fall below the prior year.

The updated guidance appears to reflect a clearer path to expansion, supported by customer commitments already visible in the order book.

At the same time, ASML announced a 12 billion euro share buyback programme scheduled to run until Dec. 31, 2028.

The plan adds a capital return element to a period already defined by rising investment from customers.

AI demand drives capacity plans

The strength in orders aligns with broader signals from the AI ecosystem. Chipmakers supplying processors for data centres and advanced computing continue to report strong results, reinforcing expectations that infrastructure spending will persist.

Shortages in memory semiconductors have also driven prices higher, prompting forecasts that major memory producers will lift capacity over the next few years.

Such expansions typically translate into higher demand for ASML’s lithography systems, including its most advanced tools.

Analysts have pointed to specific customer plans, with some expecting additional extreme ultraviolet machines to be delivered in 2026 as capacity is added.

Management commentary during the period reflected this shift.

Customers have taken a more constructive view of medium-term demand, particularly tied to AI workloads, and that assessment has fed into firmer investment plans and equipment orders.

China exposure remains constrained

While global AI investment is boosting demand elsewhere, China remains a more complex market.

Export restrictions mean ASML cannot ship its most advanced machines to the country, and the company has already signalled a change in the revenue mix.

China accounted for 33% of ASML’s net system sales last year. For 2026, the company expects that share to fall to around 20%, implying a significant decline from the peaks seen in 2024 and 2025.

Investors continue to watch for how this adjustment balances against growth in other regions, particularly as new fabs come online to serve AI-related demand.

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HSBC share price continued its strong rally and is now sitting at its all-time high, with its market capitalization hitting $300 billion. It has become the sixth biggest bank in the world after JPMorgan, Bank of America, ICBC, Agriculture Bank of China, and China Construction Bank. This article explores whether the stock has more upside to go.

Why the HSBC share price has soared 

HSBC, a top European bank, has been in a strong uptrend in the past few years, moving from a low of 277p in 2021 to the current 1,277p. 

This surge has mirrored the performance of other European banks like Société Générale, UniCredit, Lloyds Bank, and Commerzbank.

This rally happened because of the relatively higher interest rates, which boosted its net income margin and income.  

Most importantly, the management has been implementing a turnaround strategy that has seen it exit some of its unprofitable markets with the goal of increasing its emphasis on the Asian market. As part of this growth, the company announced a major acquisition of Hang Seng Bank.

 It has exited its French, Canada, the United States, Greece, South Africa, Argentina, Uruguay, and Sri Lanka.

Additionally, the company is expanding its business in other areas, including wealth management, where it is aiming to become a major competitor to other companies like UBS and Morgan Stanley.

Additionally, the company has benefited from the ongoing cost-cutting measures as it seeks to save over $1.5 billion annually.

The most recent results showed that its business did relatively well even as it incurred some restructuring costs. Its profit before tax stood at $7.3 billion, down by $1.2 billion compared with Q3’24. The decline was because of its legal provisions of $1.4 billion.

HSBC’s revenue rose by $0.8 billion to $17.8 billion, while its net interest income (NII) jumped by $1.1 billion to $8.8 billion.

Analysts believe that the company will publish strong financial results in February. The management expects that its RoTE will be in the mid-teens, with the net interest income of $43  billion. They also expect that the company will give a more robust outlook as other companies have done.

Analysts see the RoTE coming in better than expected, with the management expected to raise its RoTE outlook by as much as 200 basis points.

HSBC stock price technical analysis 

The weekly chart shows that the HSBC stock price has been in a strong uptrend in the past few years, moving from a low of 277p in 2021 to the current 1,277p. Most recently, it has risen for eight consecutive weeks as demand rose.

The stock has remained above all moving averages. For example, with the stock trading at 1,277p, the 50-week moving average is at 985p, raising the possibility of a mean reversion in the coming weeks. Mean reversion happens when an asset moves back to its historical averages.

The Relative Strength Index (RSI) has continued rising and is now at the overbought level of 77. Similarly, the Percentage Price Oscillator (PPO) has continued rising this year.

Therefore, while the stock has more upside, chances are that the stock may retreat in the coming weeks and then resume the uptrend.

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United Parcel Service is pressing ahead with a major restructuring that will see up to 30,000 jobs cut this year, underscoring how costly its separation from Amazon has become as competition intensifies in the US delivery market.

The move reflects a strategic shift by the world’s largest parcel carrier to reduce exposure to low-margin volumes while reshaping its network for a more competitive and fragmented logistics landscape.

While the workforce reductions point to continued pressure on costs, UPS has paired the announcement with a stronger revenue forecast, suggesting its reset is starting to change the shape of its business.

Amazon volumes rolled back

UPS has been steadily cutting back shipments for Amazon, its biggest customer, after concluding that the scale of the relationship was hurting profitability.

The company has previously said Amazon deliveries were extraordinarily dilutive to margins, prompting a multi-year effort to rebalance its customer mix.

That process began last year when UPS said it would deliberately reduce its dependence on Amazon as part of a broader turnaround plan.

The strategy involved prioritising higher-margin customers, including healthcare companies, while shrinking lower-value volume.

As Amazon shipments were scaled back, UPS cut 48,000 jobs and closed 93 facilities in 2025.

It has since confirmed plans to shut another 24 facilities in the first half of this year.

The latest job cuts are expected to be carried out through buyout offers to full-time drivers and by not replacing staff who leave voluntarily, rather than through compulsory layoffs.

Network reshaping continues

UPS says it is now in the final phase of an accelerated plan to reduce Amazon volume.

Over the full year 2026, the company intends to remove another million parcels per day from its Amazon business while continuing to reconfigure its delivery network.

According to its 2024 annual report, UPS employed about 490,000 people globally, with nearly 78,000 working in management roles.

The workforce is largely unionised, adding complexity to any restructuring programme, even when job reductions rely on voluntary exits.

Alongside staffing changes, UPS is also adjusting its asset base.

The company confirmed it is officially retiring its fleet of MD-11 cargo aircraft following a fatal crash in Louisville, Kentucky, in November.

The planes, which account for about 9% of the fleet, have remained grounded since the accident.

Earnings offer reassurance

Despite the scale of the restructuring, UPS reported revenue of $24.5bn for the final quarter of last year.

It also surprised markets by forecasting revenue of $89.7bn for the year ahead, pointing to early signs that the shift towards higher-margin customers may help offset the loss of Amazon volume.

UPS shares closed slightly higher in New York trading on Tuesday. The shares have gained by 0.19% after market hours.

Delivery market rivalry sharpens

The pressure on UPS is closely tied to the rapid expansion of Amazon’s in-house logistics network.

In recent years, Amazon has invested heavily in its own delivery capabilities, reducing its reliance on traditional carriers such as FedEx and the United States Postal Service.

In 2024, Amazon handled 6.3 billion deliveries in the United States, overtaking both UPS and FedEx by volume.

According to projections from Pitney Bowes, Amazon is expected to surpass USPS in total US delivery volumes by 2028.

For UPS, the rise of Amazon as both customer and competitor has forced a difficult recalibration.

The latest job cuts underline how deeply that recalibration is reshaping the company, even as the broader US delivery race continues to evolve.

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