Thursday, April 8, 2021
Global GDP forecasts are on the rise, led by the U.S.
- A look at consensus expectations for economic growth around the world supports our preference for U.S. over developed international equities.
- Gross domestic product (GDP) growth in the U.S. is expected to outpace Europe, the UK, Japan, and the broad emerging markets in 2021.
- The U.S. has also seen the biggest increase in consensus expectations for 2021 GDP growth year to date—an increase of 1.9 percentage points to near 6% (source: Bloomberg).
- While growth expectations have increased in the U.S. and globally, consensus forecasts in the Eurozone and United Kingdom have fallen this year.
- We take a look at rising global GDP growth forecasts in today’s LPL Research blog, available at 12p.m. ET.
U.S. stocks open higher following another muted session on Wednesday
- European stocks are mostly higher in midday trading as the Euro Stoxx 600 looks to set another all-time high.
- Asian markets finished mixed with Japan underperforming amid concerns that a recent COVID-19 surge could slow the economic recovery.
Stocks were little changed for the second straight day, with the S&P 500 Index trading in a less than half a percent range over the past two sessions following Monday’s record high. One market positive has likely been Treasury yields, which have paused amid historic overbought conditions. Resistance for the 10-year Treasury yield is 1.75%, while the benchmark yield’s first support is at 1.58%.
LPL Research revises previous forecasts to better reflect the growing optimism of an economy on the rebound. Learn more in this week’s Weekly Market Commentary.
Raising Economic And Market Forecasts…Again
On the LPL Market Signals podcast, Equity Strategist Jeff Buchbinder and Asset Allocation Strategist Barry Gilbert update forecasts based on how the economy’s recovery from the pandemic, aided by vaccine distribution, massive stimulus, and the desire to return to normal, continues to surpass expectations.
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