Global stock market correction likely before year-end: Reuters poll

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By Hari Kishan BENGALURU (Reuters) - Global stock markets are heading for a correction in coming months, though overall they should post marginal gains ...

SaltWire's Atlantic regional weather forecast for August 23, 2023 | SaltWireBENGALURU - Global stock markets are heading for a correction in coming months, though overall they should post marginal gains between now and the end of 2023, according to a majority of analysts polled by Reuters.

Attractive rates in money markets well above inflation have also dimmed the allure of equities, which during a long era of zero interest rates and low inflation were repeatedly described as the only game in town for investors. A 71% majority of analysts, 55 of 77, who answered an additional question in the Aug. 9-23 poll said a correction by year-end in their local equity market was either likely or very likely. The remaining 22 said unlikely or very unlikely.

"Recession projections have been erased, with soft/no landing the new base case. There is no more fear, only complacency," noted Kolanovic. A"fear of missing out" is said to have helped drive much of the equity market rallies of recent years.Most indexes, including Wall Street's benchmark S&P 500, are expected to record marginal gains by year-end from current levels, according to the poll.

 

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