Global Stocks To See Modest Gain Next Year
While global equities are expected to rise slightly next year, they will be held back due to concerns regarding the timing of the Fed’s interest rate hikes along with a diminishing monetary stimulus.
That’s according to Reuters’ latest poll, which asked more than 200 equity analysts and fund managers for their take on whether indexes will rise or fall between now and the end of next year. The experts questioned indicated they expect all but one of the 20 indexes surveyed to rise, but by less than they thought three months ago.
In addition, the majority of those polled said the top risk facing global equity markets is the Fed raising rates more than expected. Markets are pricing for only one rate hike over the next year, but the Fed has indicated it’s planning on more. [Reuters]