UBS slashes euro zone corporate earnings outlook for 2025

(Reuters) -UBS Global Wealth Management has forecast a 3% contraction in euro zone's corporate earnings growth this year, as weak second-quarter results and currency headwinds could weigh on profits.

UBS, which had previously estimated flat growth for 2025, expects earnings to recover with a 5% growth in 2026 and a faster acceleration in 2027, supported by improving trade dynamics and policy clarity.

In a note dated Thursday, UBS maintained its 'neutral' stance on euro zone equities.

(Reporting by Rashika Singh in Bengaluru; Editing by Mrigank Dhaniwala)