Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2022 11 28T092309Z 1 LYNXMPEIAR0AK RTROPTP 4 USA STOCKS
2022 11 28T092309Z 1 LYNXMPEIAR0AK RTROPTP 4 USA STOCKS

Deutsche Bank: Equity bear market rally will stretch into 2023, dollar weaker


LONDON (Reuters) – A bear market rally in equity markets will continue into next year before slumping as a recession in the world economy takes hold, Deutsche Bank said in its world economic outlook published on Monday.

The German bank said it expected the S&P 500 to rally to 4,500 in the first half of next year and then fall back.

The broadest measure of U.S. stocks closed at around 4,026 in Friday and has rallied roughly 15% from a low hit in October.

In its 2023 outlook, Deutsche said a recession was likely to take hold from mid-year and would also be felt in credit markets where U.S. high yield spreads should widen to 860 basis points by end-2023, and euro-denominated high yield spreads should reach 930 bps.

An end to the U.S. tightening cycle and a recession was viewed as more positive for Treasuries, with the 10-year yield expected to ending 2023 around current levels at 3.65%.

German Bunds were seen underperforming, however, with 10-year yields moving to 2.60% from around 1.96% now

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

“Finally in FX, we see a reversal in the dollar’s upswing, with euro/dollar strongly moving back above 1.10, likely reaching 1.15 by late 2023,” Deutsche Bank analysts said.

On oil, they added that supply disruptions could temporarily lift Brent crude prices to $100 in the first quarter of next year, before declining to $80 by year-end.

 

(Reporting by Dhara Ranasinghe, editing by Karin Strohecker)

 

Recent Post: