HSBC: Weakness in the US dollar may boost second-quarter earnings for American companies.

HSBC analysts said in a report that a weakening US dollar could boost the earnings of American companies in the second quarter. These analysts stated that around 30% of the revenue of companies in the S&P 500 index comes from overseas, but for the technology sector, this proportion is much higher at around 55%. A weaker US dollar will boost the earnings of US companies with global revenue, meaning that each unit of foreign currency can be exchanged for more US dollars. These analysts also mentioned that on the other hand, a weakening US dollar would have a negative impact on the earnings of European companies. HSBC stated that the recent strength of the euro will reduce the earnings per share of European companies in the second quarter by 5 percentage points, marking the biggest drag on earnings due to exchange rates since 2020.