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2023 started on a weak note but outlook bright: S&P Global Market Intelligence

ANI | Updated: Jan 15, 2023 13:10 IST

Washington [US], January 15 (ANI): Though 2023 started on a weak note for stock investors, the outlook is expected to be bright globally as the year proceeds, fueled partly by the reopening of the Chinese economy after the Covid-induced lockdown, said global financial information and analytics services provider S&P Global Market Intelligence in a report.
Going ahead, investors expect the equities to rise after a tough 2022.
Looking at global equity markets, Asia (excluding China and Japan), the report said, is seeing the most bullish sentiment, though stocks in mainland China are also seeing above-average sentiment on the back of a post-Covid-19 growth rebound. On the contrary, the UK equity market is expected to lose value this year

For the US markets, the report said risk appetite remains negative among the investors as its central bank tightens monetary policy further to contain out-of-target inflation.
The US central bank's policy rate is now in a target range of 4.25-4.50 per cent, the highest level in 15 years, and notably, it was near zero in the early part of 2022. Prior to the recent 50 basis points hike, there has been a fourth consecutive hike of 75 basis points magnitude.
"Risk aversion continued to permeate among US equity investors at the start of 2023, with the market expected to lose value in the opening month of the year. More encouragingly, near-term losses are expected to give way to gains as the year proceeds," said Chris Williamson, Executive Director and the author of the report, adding, "However, equities are set to underperform credit and commodities, thanks principally to caution from investors outside of North America."
For Asian markets, Williamson expects the strongest gains over the coming year, attributing to the reopening of the Chinese economy after about three years. (ANI)