Global stock markets are approaching historical peaks, and buying on dips may push new highs again
Global stock markets are nearing historical highs, with analysts predicting that supported by buying on dips, stock indices are likely to rise further. The MSCI Global Index is just 0.5% away from the record of 887.72 points set on February 18. Since Trump announced the tariff increase, the index has rebounded by 19%. Market risk appetite has strengthened, with investors seizing the opportunity to build positions during declines. Over the next 12 months, the MSCI Global Equity Benchmark Index is expected to rise by 11%. Morgan Stanley and Nomura strategists have upgraded their ratings on U.S. and Chinese stocks
According to Zhitong Finance APP, global stock markets are gradually approaching historical highs, with some analysts predicting that supported by buying on dips, stock indices are expected to rise further.
The MSCI Global Index is currently just 0.5% away from the closing record of 887.72 set on February 18. Since the index fell following Trump's announcement of tariff increases in early April, it has rebounded 19% from its lows.
Massimiliano Bondurri, founder of SGMC Capital, stated in an interview: "Many investors may have missed previous opportunities for gains and are waiting for a market correction to position themselves."
The temporary exemption from tariffs for most U.S. trading partners has enhanced market risk appetite, prompting investors to seize opportunities to build positions during market declines. The declines in the stock market triggered by Trump's tariff announcement in early April have now been largely recovered or significantly narrowed by major indices.
According to compiled analyst forecast data, the MSCI Global Equity Benchmark Index is expected to rise by 11% over the next 12 months. Strategists have begun to adjust their asset allocations for major markets.
Morgan Stanley strategists upgraded their ratings on U.S. stocks and U.S. Treasury bonds last month, anticipating that a series of future interest rate cuts by the Federal Reserve will support the bond market and boost corporate earnings. Meanwhile, Nomura strategists have upgraded their rating on Chinese stocks to "tactical overweight."
Investors are closely monitoring the progress of the U.S.-China trade dispute, with a focus on whether the leaders of the two countries will engage in dialogue to ease tensions.
"Reaching a constructive solution is in the common interest of both countries," said George Maris, Chief Investment Officer and Global Head of Equities at Principal Asset Management. "There is ample room for reasonable compromise on both sides."
