INSUBCONTINENT EXCLUSIVE:
By Ksenia GalouchkoEquities may have shown signs of stabilizing Monday, but JPMorgan Chase - Co
strategists caution that coronavirus fears will weigh on investor sentiment and pressure stocks for longer, delaying a strong and quick
peak first, which they expect to happen in April-May, before stocks can see a lasting recovery, taking the S-P 500 to a new historical high
The negative impact from the epidemic, while serious, is unlikely to keep crimping economic growth in the second half of this year as
central banks step up support measures, according to JPMorgan.
BloombergGlobal equities initially advanced on Monday amid optimism that
central banks will help cushion markets from the impact of the coronavirus after spreading infections prompted the worst week of declines
since the 2008 financial crisis
However, European stocks erased gains in early morning trading after data showed that euro-area factories suffered supply disruptions from
the epidemic and the Organization for Economic Co-operation and Development slashed its global economic forecast.
The JPMorgan analysts are
adjusting their outlook for risk assets after arguing in early February that the bigger the short-term decline in equities because of the
coronavirus, the stronger the eventual bounce would be
At the same time, they are maintaining their underweight recommendation for United States and U.K
time to load up on global equities.
BCA Research upgraded its three-month view on global stocks to overweight, saying the economic downturn
from the virus will be short-lived and the United States Federal Reserve will likely lower rates.
The JPMorgan strategists also said that
monetary policy officials will increase their supportive measures
