Global equities to push higher through mid-2017
Global equities should push higher through mid-2017, Societe Generale said, thanks to stronger growth and a better inflation outlook, along with continued decent yields.
Equities To focus on the next recession in the U.S.
"In addition, even though overall upside may feel limited, there are opportunities for large equity returns on some focused segments of the market, as seen so far this year."
As far as the US is concerned, the French bank expects the S&P 500 to push higher still despite already hitting a new all-time high over the summer. It cited a still soft Fed, more fiscal easing, higher oil prices and accelerating M&A as catalysts.
The bank said it has raised its exposure to the consumer discretionary sector to better gear itself to the eurozone consumer as it pointed to a lower unemployment rate and better economic return for the region.
"The sector is lagging its U.S. peers and should benefit from rising consumer confidence."
The bank also said it was gearing up to fiscal easing. For the first time since the euro area crisis, the overall fiscal stance in the bloc should turn into easing in 2017, it said. ■
