Goldman Sachs and UBS forecast strong earnings amid rising Euribor

Investment banks Goldman Sachs and UBS are forecasting a robust earnings season for both European and U.S. markets. Goldman Sachs strategists Christian Mueller-Glissmann and Peter Oppenheimer anticipate that upcoming corporate results will exceed expectations, maintaining a bullish stance on equities through 2026. The bank specifically predicts an 18% growth in Wall Street profits by 2027.

In Europe, the banking sector is expected to benefit from higher interest rates set by the European Central Bank, which can boost profits for major institutions such as Banco Santander, BBVA, Banco Sabadell, CaixaBank, and Unicaja. UBS has also slightly raised its earnings per share forecasts for European banks through 2027, citing interest rate trends and credit growth.

Simultaneously, the 12-month Euribor has risen to 3.267%, increasing the cost of variable-rate mortgages in Spain. The index, which represents the rate at which European banks lend to one another, has seen a steady climb since February, rising from approximately 2.22% to current levels, directly impacting monthly mortgage payments for consumers.