ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • Survey
  • videos
  • photos
  • ZNAA'22
  • Trending News
    • Viral News
    • Travel
    • People
    • Entertainment
    • Sports
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • Tata Motors to buy Ford India's Sanand factory for Rs 726 crore
  • At NITI meet, PM Modi gives mantra of 3Ts, modernising agriculture to Chief Ministers in big push for 'Atmanirbhar Bharat'
  • Majority of employees want hybrid work, not work from office - An insight
  • Oil slides further amid recession fears, slow recovery in China imports
  • Commonwealth Games schedule India day 11, August 8
Read in App
Business News » World News

Global stock markets likely to strengthen in next 6 months: UBS

Monetary  policy of US Federal Reserve, escalation of trading tensions and poor market sentiments could weigh on markets, according to UBS.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
 Global stock markets likely to strengthen in next 6 months: UBS
Global Equity markets are more likely to advance than fall in the next six months amid low risk of recession and attractive valuations, Image source: Pixabay

Global Equity markets are more likely to advance than fall in the next six months amid low risk of recession and attractive valuations, UBS Global Wealth Management has said.

"Following the economic data rather than the news headlines has proven a good strategy for navigating the market over the medium term," Mark Haefele, chief investment officer with UBS Global Wealth Management was quoted as saying by Xinhua news agency on Friday.

Now, global equities trade on 15.5 times of price-to-earnings (PE) ratio in comparison with long-term PE ratio of 18.3 times. In particular, equities in emerging markets have around 11 times of price-to-forward earnings ratio and 25 percent valuation discount to peers in developed countries. 

Monetary policy of US Federal Reserve, escalation of trading tensions and poor market sentiments could weigh on markets, according to UBS.

Though it`s rational for the Federal Reserve to slow down pace of interest rate hikes, it may feel the need to display independence following recent criticism from US President Donald Trump. 

The Federal Open Market Committee is scheduled to hold its regular meeting on Dec. 18-19 with Federal fund rate expected to be hiked by 0.25 percent. 

"I think the most likely case is for the Fed to continue to raise rates three or four times in 2019. But it`s also possible that if the economy slows further that the Federal pause," said Barry Eichengreen, professor of economics and political science with University of California, Berkeley, recently.

The underlying rate of growth which comes from the labor force growth and productivity growth is only 2 percent. To avoid inflation and imbalances, the growth rate has to smoothly decline from the 3 percent or so at which it`s been running to 2 percent which is the underlying potential growth rate, according to Eichengreen.

Watch Zee Business Tweet Video here: 

#KochiMuzirisBiennale2018 की रंगारंग शुरूआत, 3 महीनों तक चलने वाले बिनाले की खासियत जानिए नेहा सिंह से।@KochiBiennale #KMB2018 pic.twitter.com/SLd7rN37El

— Zee Business (@ZeeBusiness) December 15, 2018

The U.S. economic growth would fall to 2.3 percent in 2019 from 2.9 percent estimated for 2018 and the Federal Reserve would raise interest rates two times and pause in 2019, according to a report by Morgan Stanley on Dec 7.

The yields of two-year and 10-year Treasury bonds are not expected to invert. Even such inverted yield curves happen, it would not point to an imminent recession or bear market, said the UBS. 

Still, the inversion of two-year and three-year notes against five-year Treasury bonds on Dec 4 jittered the market with concern over impending recession of US economy.

 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
global equity marketseconomic dataGlobal stock markets
Written By: IANS
Updated: Sun, Dec 16, 2018
10:37 am
New York, IANS
RELATED NEWS
JP Morgan bullish on global markets in H2; rejects possibility of recession, sees inflation receding in second half JP Morgan bullish on global markets in H2; rejects possibility of recession, sees inflation receding in second half
Stocks stall as West considers more sanctions against Russia Stocks stall as West considers more sanctions against Russia
IMF chief says market fluctuations aren't worrying IMF chief says market fluctuations aren't worrying
Global Markets: Stocks scale new record highs, dollar stuck Global Markets: Stocks scale new record highs, dollar stuck
Asian markets hit decade-high on global equity surge Asian markets hit decade-high on global equity surge

LATEST NEWS

Stocks to buy today: Nykaa, Wipro, SBI, HPCL among list of 20 stocks for profitable trade on August 8

Coal India dividend 2022: Check record date, amount and payment date

Manappuram Finance, HLE Glasscoat and Balkrishna Industries: Buy, sell or hold—What should investors do?

Quit India Movement Day: When Mahatma Gandhi coined famous slogan 'do or die'

Market next week: Global cues, macro numbers, last batch of earnings to dictate D-Street in holiday-truncated week: Experts

Rupee vs Dollar: Indian currency falls 22 paise to 79.46 against $ in early trade

Vodafone Idea may increase tariffs at regular intervals; here's why

Tata Motors to buy Ford India's Sanand factory for Rs 726 crore

Samsung Galaxy Z Fold 4, Z Flip 4 launch this week - Expected price, specs, Unpacked event date and timings

Domestic investors pip FPIs to hold all-time high in June 2022 quarter

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV