- Global stock market correction likely before year-end: Reuters poll

According to a majority of analysts polled by RushHourDaily, global stock markets are expected to experience a correction in the coming months. However, overall, they are projected to post marginal gains until the end of 2023. The year 2022 was challenging for stocks, and this trend continued into this year as central banks raised interest rates to combat inflation. Despite the unexpected surge in stock prices from May to July, analysts still have concerns that stocks may underperform. The allure of equities has also diminished due to attractive rates in money markets that are higher than inflation. Additionally, the recent increase in benchmark U.S. Treasury yields suggests that rates will remain higher for a longer period. Fed Chair Jerome Powell’s upcoming speech at the central bankers’ conference in Jackson Hole may further solidify these expectations. In an additional question, 71% of analysts stated that a correction in their local equity market by year-end is likely or very likely. However, market volatility remains low, even with upgraded expectations for the performance of the world’s largest economy, which has eliminated predictions for Fed rate cuts early next year. Most indexes, including the S&P 500, are expected to record marginal gains by year-end. The S&P 500 index, which has already risen nearly 15% this year, is forecasted to end the year at 4,496, about 2.2% above its current level. Japan’s Nikkei is predicted to gain nearly 8%, outperforming other major indices. Brazil’s Bovespa and Mexico’s S&P/BMV IPC are also expected to rise by around 13% and 7%, respectively. However, most other indices are projected to either fall or post only marginal gains. Europe’s STOXX 600 and Euro STOXX 50 indices are expected to gain 1.3% and 0.6%, respectively. Indian equities, which have already risen over 7% this year, are forecasted to rise only another 1.2%.