World shares growth forecast in 2019 was reduced

Time to read
1 minute
Read so far

World shares growth forecast in 2019 was reduced

September 03, 2018 - 14:18
0 comments

Survey of major participants of equity market, performed by Reuters, showed that historically long growth of world shares will continue in 2019, but estimates of such growth were reduced, Reuters reports.

Photo © Gerd Altmann, CC0 1.0

Survey of major participants of equity market, performed by Reuters, showed that historically long growth of world shares will continue in 2019, but estimates of such growth were reduced, Reuters reports.

After excellent results in 2017, world equities continued to rise in August amid stable economic growth and increasing corporate earnings. However, interest rates hikes and concerns about trade war increased turbulence and volatility of the markets.

It shall be noted, that such volatility will be not only the source of discomfort for investors, but also a source of opportunities, experts think.

More than 300 strategists in area of stocks and brokers agreed that world indexes will be growing though the end of next years. However, none of them will show that same gains this year as it did in 2017.

Almost ten years of easy monetary policy stimulated today’s growth and resulted in higher valuations. Many of shares are traded above long-term averages.

About half of 66 strategies think that transfer from shares buyback that caused prices growth to substantial business investments shall not be expected in the nearest time. Such tendency will be having place until geopolitical and trade tension ease.

S&P 500 growth will be restricted due to slowdown in corporate earnings. FTSE 100 will be left behind its peers due to Brexit. European shares will recover losses but will unlikely grow above January highs.

Strategists expect that emerging markets that suffered this year will show better results by the end of 2019. Indian stock index BSE that in contrary to the general tendency showed 14% growth, might reach another record by the end of this year already.