2016-06-27zerohedge.com

Equity indexes worldwide are likely to endure sustained declines and heightened volatility, as uncertainty persists. Our European equity strategists see a 16% downside the Stoxx 600 that would push through the February lows. Our US equity strategists expect up to a 6-7% drop in the S&P 500.

...

The spillover from Brexit to global growth is modest but not trivial, in our view. We have trimmed 0.2pp from our US GDP growth forecast for the next six quarters, bringing 2017 growth down to 1.8% from 2.0% previously.

...

Central banks that held their fire ahead of the UK referendum may soon deploy additional easing. Some fiscal stimulus is likely as well. In particular, we look for the BOJ and RBA to ease further at upcoming meetings, and the ECB to extend QE at its July meeting. We expect the BOE to cut rates by 50bp to zero in July and to expand QE by £50bn within the next few policy meetings.



Comments: Be the first to add a comment

add a comment | go to forum thread