RBC survey sees solid global outlook but flags U.S. policy risks

Published 30/06/2025, 15:06
© Reuters

Investing.com -- Equity analysts at RBC Capital Markets remain broadly upbeat about the global market outlook over the next six to 12 months, according to the firm’s latest Global Sector Navigator (ELI:NVGR) report. 

The survey, conducted in late June 2025 and spanning analysts in the U.S., Europe/U.K., Canada, and Australia, shows constructive views on performance, demand, and valuations across most regions, but warns that U.S. policy risks could weigh on sentiment.

“We found constructive views on performance over the next 6–12 months, and valuation and demand,” RBC wrote.

However, “views on the policy backdrop tilt slightly negative for the U.S.” The firm noted that the U.S. political environment drew more negative responses than any other region, especially in sectors like Staples and Health Care, where policy sensitivity is highest. Tariffs and deregulation were the top concerns.

Despite those risks, RBC said its analysts are “constructive on performance” across all regions, with Canada and Australia seeing the strongest sentiment. In terms of sectors, Financials and Real Estate ranked highest globally, while Consumer Discretionary remains least favored.

As a result of the survey, RBC upgraded U.S. Materials to Overweight and moved Staples and REITs to Market Weight. It also downgraded Consumer Discretionary to Underweight and shifted Communication Services and Utilities to Market Weight.

“2026 consensus GDP forecasts are stable outside the U.S., but are moving up modestly in the U.S.,” RBC said, adding that this may have helped push equity prices higher recently.

Outside the U.S., RBC noted that analysts were generally more upbeat on domestic policy environments. “Our non-U.S. analysts feel better about their domestic policy setup,” the report said, with Canadian and Australian analysts especially constructive on energy and industrial sectors.

 

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