Stock market investors are ‘too optimistic’ over 2020 earnings and the 2021 recovery, strategists say

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 45 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 97%

Singapore News News

Singapore Singapore Latest News,Singapore Singapore Headlines

Investors may be attaching too much weight to the 2021 recovery, ING strategists said.

All three major U.S. indexes climbed last week despite the unemployment rate rising to 14.7% — the worst since the Great Depression. The coronavirus pandemic cost 20.5 million U.S. jobs in April, according to Friday’s data. However, futures were mixed early on Monday, losing initial gains to trade lower before the open as investors looked toward the global recovery.

ING’s chief international economist James Knightley sees a 7% contraction in U.S. gross domestic product, well below the -4% consensus, which the team said would see the 2020 drop in corporate profits “dwarf” those of the financial crisis. “In uncertain times like these, higher earnings expectations or lower valuations may be needed to keep equity markets supported. We err towards the latter,” they said.After closing 455 points up on Friday, the Dow Jones Industrial Average DJIA, -0.82% was set to open lower on Monday. Dow futures YM00, -0.99% edged 0.5% lower, S&P 500 ES00, -0.67% futures declined 0.6% and Nasdaq futures NQ00, +0.21% were 0.3% down.

Budget airline EasyJet EZJ, -7.56% may have to raise up to £1 billion, Citi analysts said, after the U.K. government said it was looking to impose a 14-day quarantine on people entering the country.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in SG
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Everyone needs to look to US Uranium producers. Trump administration serious about laying foundation for a thriving US Uranium industry. Only a few Companies in US have survived.

Not optimist forced do to coming inflation

Singapore Singapore Latest News, Singapore Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

A ‘much more severe’ selloff looms in the stock market, strategist warnsDoug Ramsey, the chief investment officer of The Leuthold Group, warned clients in a note that the day is coming when the dire state of the economy catches... Really? When? 股票都在美联储手里,谁有能力大幅抛出股票?
Source: MarketWatch - 🏆 3. / 97 Read more »