JPMorgan's global strategists maintain that robust profit margins, broadening earnings growth, and solid corporate balance sheets will drive equity markets higher through year-end. In a Monday research note led by Mislav Matejka, the team argues that the recent pullback triggered by Brent crude surpassing $100 and rising bond yields is unlikely to derail the ongoing rally.

Strategists recommend an overweight position in eurozone and emerging market equities, with sector preferences favoring mining, capital goods, and semiconductors while underweighting media and software, as tech stocks may lose their market leadership in the second half. They project the MSCI Eurozone Index reaching 420 points by December, implying a potential 9% gain, with targets of 6800 for the Euro Stoxx 50, 2750 for the MSCI Europe Index, and 680 for the Stoxx 600.

While short-term volatility is expected to persist, JPMorgan advises that risk-off corrections should be viewed as buying opportunities, noting that corporate margins remain near historical highs with earnings growth momentum no longer confined to artificial intelligence alone.