Thursday, April 8, 2021
Top Story
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.
Daily Insights
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.
Technical update
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%.
Raising Forecasts…Again
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.
IMPORTANT DISCLOSURES
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.
References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.
Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities.
All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
All index and market data are from FactSet and MarketWatch.
This Research material was prepared by LPL Financial, LLC.
Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC).
Insurance products are offered through LPL or its licensed affiliates. To the extent you are receiving investment advice from a separately registered independent investment advisor that is not an LPL affiliate, please note LPL makes no representation with respect to such entity.
- Not Insured by FDIC/NCUA or Any Other Government Agency
- Not Bank/Credit Union Guaranteed
- Not Bank/Credit Union Deposits or Obligations
- May Lose Value
For Public Use – Tracking # 1-05131415