Global stocks to correct in short term as inflation weighs
Global stock markets are expected to correct in the next three months as investors digest the fact that interest rates are likely to stay higher for longer, according to a Reuters poll of equity analysts.
The Feb. 10-22 Reuters poll of more than 150 strategists, analysts and fund mangers covering 17 global stock indices, found that 56% were expecting their local market to fall in the next three months.
A total of 48 out of 86 respondents said the chances of a correction were either high or very high. The remaining 38 said low or very low.
The poll showed a majority would fall short, or just about recoup their 2022 losses by the end of the year.
Global stocks (.MIWD00000PUS) fell nearly 20% in 2022 and would have fared worse if it were not for a late-year rally on hopes falling inflation and weaker growth would force central banks to halt an historic rate-hiking run and swiftly start cutting back again just months later.
However, sticky inflation, strong labour markets and resilient economic growth so far this year have dashed those rate cut hopes, sending bond yields and market interest rate pricing sharply higher.
This report’s information was first seen on REUTERS; to read more, click this link.
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