This year will be the worst for many world stock markets in nearly a decade at least, although a majority of equity strategists polled by Reuters say top indexes will not revisit lows struck this March following an explosive rally since then.
FILE PHOTO: A trader wearing a mask reacts at the closing bell, on the first day of in person trading since the closure during the outbreak of the coronavirus disease on the floor at the New York Stock Exchange in New York, U.S., May 26, 2020. REUTERS/Brendan McDermid/File Photo
The May 12-27 Reuters polls of over 250 analysts across Asia, Europe and the Americas, showed predictions broadly focused on economies and businesses swiftly reopening from lockdown, with 11 of the 17 indexes expected to rise from here by end-year. That disconnect between what equity markets are pricing in and economic prospects is coming under closer scrutiny.
“But macro weakness is also important, as after a major employment shock and a possible COVID-19 second wave, consumers may be slow to recover globally. The Fed has indicated a very slow recovery,” he said. While 2021 was projected to be better for stocks than this year, only four indexes were forecast to recover 2020’s lost ground and 16 were not expected to reclaim pre-pandemic peaks until at least 2022.
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