BENGALURU : Global stocks will shake off recent weakness and rise over the next 12 months but at a more tempered pace than this year's rally, found a Reuters poll of equity analysts who also said a correction was likely in the next six months.
Indeed, when asked if a correction in their local equity market was likely, about three-quarters of respondents - 79 of 106 - in a global poll covering major indexes from over a dozen countries said Yes. "The key risk to our outlook is a hawkish shift in central bank policy, especially if post-pandemic dislocations persist."
Driven by earnings and economic growth, the benchmark S&P 500 index will extend this year's rally and gain 7.5per cent between now and end-2022 to finish at 4,910. Despite scaling new peaks, the majority of the 17 global indices polled on were forecast to neither repeat nor surpass this year's strong performance next year.
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