'Goldilocks narrative' to continue to support stocks higher: Barclays

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'Goldilocks narrative' to continue to support stocks higher: Barclays

Global equities have risen approximately 15% since the summer growth scare, as recession fears have faded and recent data suggests a"goldilocks" environment again.

"As long as the data remains not too hot/cold, the goldilocks narrative can continue to support equities higher, in our view,” strategists led by Emmanuel Cau said in a note. Barclays suggested that much of the negative news might already be priced in. The potential formation of a technocratic government in France could improve sentiment by increasing the likelihood of a 2025 budget adoption.

Equity inflows slowed to $8 billion last week, marking the weakest level since the US election and far below the $33 billion average seen since early November. The drop was attributed to reduced momentum in US and emerging market inflows.

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