Following the upward revision of the S&P 500 index target for 2025, Citigroup experts also shared their optimistic forecasts regarding the dynamics of global stocks. According to their estimates, the MSCI All Country World Index Local will rise to 1,100 points by December, or 3% higher than the current level.
The bank's experts revised their outlook due to easing market concerns about global trade tensions in light of recent events. The United States has shown a willingness to reduce the import tariffs and engage in negotiations with key trading partners. First and foremost, the situation was defused by US-China talks, Investing reports.
Citigroup does not rule out that the new US president's policies will remain unpredictable in the future, but they expect more openness and transparency from the government. This should make the global trade situation less tense, according to the bank.
In addition, Citigroup analysts predict an improvement in the European stock market due to the effective cycle of rate cuts by the region's central bank.