World stocks' dance to continue, but inflation could mute the music: Reuters poll | The Business Standard
Skip to main content
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Wednesday
May 28, 2025

Sign In
Subscribe
  • Epaper
  • Economy
    • Aviation
    • Banking
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
WEDNESDAY, MAY 28, 2025
World stocks' dance to continue, but inflation could mute the music: Reuters poll

World+Biz

Reuters
25 February, 2021, 11:45 am
Last modified: 25 February, 2021, 11:56 am

Related News

  • Shares up slightly, dollar struggles as investors consider tariff truce
  • Global stocks, dollar surge as US, China agree 90-day tariff relief
  • Stocks and dollar fall as Trump's Fed attacks jangle nerves
  • Shares fall in Asia as Nvidia curbs fan worries, gold hits record
  • Trump confirms no plans to suspend global tariffs despite US stock market dip

World stocks' dance to continue, but inflation could mute the music: Reuters poll

All 17 major stock indexes polled on by Reuters, from Tokyo to Toronto, were expected to end 2021 higher from here, with nine predicted to extend their record-setting rallies

Reuters
25 February, 2021, 11:45 am
Last modified: 25 February, 2021, 11:56 am
Dividers are seen inside a trading post on the trading floor as preparations are made for the return to trading at the New York Stock Exchange (NYSE) in New York, U.S., May 22, 2020. REUTERS/Brendan McDermid/File Photo
Dividers are seen inside a trading post on the trading floor as preparations are made for the return to trading at the New York Stock Exchange (NYSE) in New York, U.S., May 22, 2020. REUTERS/Brendan McDermid/File Photo

The bull-run in global stocks fuelled by cheap cash and reflation hopes will continue for at least another six months but a rise in bond yields as inflation expectations grow could throw a spanner in the works, Reuters polls found.

Despite severe economic damage from the pandemic, MSCI's global stock index -- which tracks shares across 49 countries -- notched up all-time highs this month, having risen over 70% since hitting rock-bottom in late March amid ample liquidity from central banks and massive fiscal stimulus.

In recent trading sessions, world stocks have pulled back as a rapid surge in global bond yields raises expectations that major central banks could eventually turn less accommodative in a bid to tame inflation.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

But even as a gauge of equities slipped this week on hints of rising inflation led by higher oil prices and the strongest copper price in nearly a decade, the Feb. 12-24 polls of nearly 300 equity strategists found the trend of stock market gains was set to continue this year.

All 17 major stock indexes polled on by Reuters, from Tokyo to Toronto, were expected to end 2021 higher from here, with nine predicted to extend their record-setting rallies.

Fifteen of those indexes have already breached the mid-2021 consensus level and 10 indexes are above the end-2021 median level predicted in the previous poll in November.

In response to an additional question, over two-thirds, or 79 of 111 analysts, said the run-up in global stocks would continue for at least another six months, including 58 who said over a year.

"It's the health-crisis nature of this recession that has led to the greatest monetary and fiscal policy response in history. It's not that people are so bullish about the future but rather they are flush with cash and the excitement of making money," said Michael Wilson, chief US equity strategist at Morgan Stanley.

"Our advice here is to take pause and observe a bit as these excesses are wrung out; but bear in mind we are at the beginning of a new economic cycle and that usually means a multi-year bull market has begun."

With over 65%, or 72 of 110 strategists who responded to a separate question, expecting corporate earnings to return to pre-Covid-19 levels within a year, stock markets from developed to emerging were forecast to rally through 2021.

"In some sectors and markets, corporate earnings are now above their pre-virus levels, whereas in the energy sector and some of the other badly hit sectors they are still below," noted Simona Gambarini, a markets economist at Capital Economics.

"That is why we think the next leg-up in equity markets will coincide with a rotation towards coronavirus-vulnerable sectors."

But concerns were growing for a significant market correction as surging US Treasury yields on rising inflation prospects have triggered caution over pricey equity valuations.

Those fears have already hit shares of high-flying growth companies and top technology-related firms, which were at the heart of a stunning rally that drove major indexes to record levels.

That was also reflected in a market gauge of inflation expectations, the Treasury Inflation Protected Securities' (TIPS) break-even rate, which has risen this month, with the yield on 30-year US TIPS rising above zero for the first time since June.

When asked about the likelihood of a significant correction -- commonly defined as a fall of 10% or more -- in stock markets in the next six months, 87 of 115 respondents said it was "likely", including 27 who said "very likely".

"Yes, there are those pesky rising long-bond yields that could, like an overlooked reactor vent, be the fatal flaw in the blueprints that blow everything up," said Michael Every, global strategist at Rabobank.

"But let's overlook that systemic risk ... After all, central banks can always adopt yield curve control if needed and take away that market function -- striking it down and seeing it disappear without shoes or underpants left as reminders."

 

Global Economy

Global stocks / Central banks / Global Market

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Leaders and activists of BNP gather at Nayapaltan ahead of the rally of three BNP affiliated organisations on Wednesday, 28 May 2025. Photo: Rajib Dhar/TBS
    'We wanted election roadmap from Yunus, not staged resignation': Salahuddin at BNP rally
  • File Photo: Reuters
    Bangladeshi cos expecting increased costs due to tariffs, yet extremely optimistic about int'l growth: HSBC survey
  • Photo: Collected
    HC overturns graft convictions of Tarique, Zubaida

MOST VIEWED

  • Selim RF Hussain. Sketch: TBS
    BRAC Bank MD Selim RF Hussain resigns
  • Bangladesh Bank Governor Ahsan H Mansur. TBS Sketch
    Depositors need not worry as govt will take over banks before merger: BB governor
  • Graphics: TBS
    Suspicious banking activities surge by 56% since July: Cenbank
  • Photo: Collected
    DU student assaulted for protesting eve-teasing at Chadni Chowk
  • Illustration: TBS
    Bangladesh sees highest-ever per capita income of $2,820 in FY25, BBS provisional data shows
  • Officials protest inside the Secretariat on Tuesday, 27 May 2025, over a government ordinance amending the Public Service Act, 2018. Photo: Rajib Dhar
    Protest at Secretariat suspended as govt assures decision on ordinance tomorrow

Related News

  • Shares up slightly, dollar struggles as investors consider tariff truce
  • Global stocks, dollar surge as US, China agree 90-day tariff relief
  • Stocks and dollar fall as Trump's Fed attacks jangle nerves
  • Shares fall in Asia as Nvidia curbs fan worries, gold hits record
  • Trump confirms no plans to suspend global tariffs despite US stock market dip

Features

In recent years, the Gor-e-Shaheed Eidgah has emerged as a strong contender for the crown of the biggest Eid congregation in the country, having hosted 600,000 worshippers in 2017. Photo: TBS

Gor-e-Shaheed Boro Maath: The heart of Dinajpur

1d | Panorama
The Hili Land Port, officially opened in 1997 but with trade roots stretching back to before Partition, has grown into a cornerstone of bilateral commerce.

Dhaka-Delhi tensions ripple across Hili’s markets and livelihoods

2d | Panorama
Photo: Collected

Desk goals: Affordable ways to elevate your study setup

3d | Brands
Built on a diamond-type frame, the Hornet 2.0 is agile but grounded. PHOTO: Asif Chowdhury

Honda Hornet 2.0: Same spirit, upgraded sting

3d | Wheels

More Videos from TBS

Donald Trump warns Vladimir Putin he is 'playing with fire' over Ukraine

Donald Trump warns Vladimir Putin he is 'playing with fire' over Ukraine

25m | TBS World
Families of those injured and martyred in the July coup protest in the capital

Families of those injured and martyred in the July coup protest in the capital

1h | TBS Today
Trump administration suspends student visas in the US indefinitely

Trump administration suspends student visas in the US indefinitely

1h | TBS World
Crowds throng BNP’s youth rally

Crowds throng BNP’s youth rally

2h | TBS Today
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net