Global stocks outlook still positive, but vulnerable to coronavirus: Reuters poll

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Global stocks have further to run this year, but the likelihood of a correction ...

BENGALURU - Global stocks have further to run this year, but the likelihood of a correction of 10% or more is high, according to Reuters polls of market strategists, with the severity of the economic hit from the coronavirus outbreak being the biggest risk.

However, all but one are in the red so far this year, with most losses sustained over the past five trading days amid fears that the coronavirus outbreak will become a pandemic, disrupting supply chains and dealing a major hit to the global economy. Still, the bull run in global stocks was expected to extend for at least another six months, according to 74 of 100 analysts in response to an additional question. Nearly 60 of those said it would last more than a year.

What is notable in this survey is that ever-bullish equity strategists are slightly more pessimistic and less confident than in previous polls. That suggests expectations for monetary policy to be deployed again to head off any economic downturn would not favour stock markets as it did last year. “Nothing has changed since last week. What we learned in 2008 - as well as in 1929, 1971, 1982 and 1998 - is that a highly leveraged financial system is vulnerable in many ways to an exogenous shock. The coronavirus and the policy response to it are exactly that kind of exogenous shock.”

 

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GLOBAL Market Performance (YTD) DOWNfall US DowJones 6% JAPAN Nikkei 7 % UK FTSE 7% HK HANGSENG 6 % INDIA SENSEX 4 % CHINA SHCOMP 1.6 % Leave apart some INDEX like Korea KOSPI Italy FTSEMIB which corrected in double Digit 🤠

What?

Zero sensationalism and 100% Facts, we are covering Coronavirus and this where you get all facts and no fluff. CoronavirusOutbreak CoronaVirusUpdates

At some point, if the virus spreads enough, China will go back to work and take their chances. We all will. The only reason they’ve shut down now is to try and contain it.

Would be really embarrassing for Reuters if the markets continue to tank because world leaders can't get their shit together & contain the problem. And now mother's in charge of coronavirususa so...😬

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