Blackstone: The stock market will continue to be turbulent this year, Australian stocks are expected to rush to 5800
2014-01-27 14: 56: 48
Editor in charge: Catherine
(From this newspaper) Global investment manager BlackRock Group (BlackRock) predicts that both Australian and overseas stock markets will rise by the end of 2014, but the recent corrections are expected to continue for some time.
The Blackstone Group stated at the World Economic Forum in Davos that the global stock market will experience a turbulent year in 2014, but "the overall trend is still good"-as long as the government makes wise decisions.
Laurence Fink, Chief Executive Officer of the Blackstone Group, said: "This week's stock market trends will herald a whole year, and we will see a more volatile global stock market this year."
The recent concerns about a slowdown in the Chinese economy and the gradual exit of QE in the United States have caused market panic. The stock market plummeted last week and the sharp depreciation of emerging market currencies triggered fears of stagnant growth.
On Wall Street last Friday, the Dow Jones Index fell 318 points to 15 points. Blue chip stocks experienced their worst trading day since June last year. They fell by about 879 points in two trading days. The S&P 6 index also sank 500 points to 500 points, a decline of 38%. Despite this, the US stock market is still close to its highest level in history, and the stock market soared 1790% last year.
The latest corporate earnings season has kicked off. Last week, the Australian stock market closed down for three consecutive weeks, and the Australian dollar fell below 87 US cents, the lowest level in three and a half years.
Australian investors have recently been carefully weighing whether the weak start of 2014 implies a profitable sell-off based on last year’s strong upward trend, or a larger correction, according to Shane Oliver, chief economist and head of investment strategy at AMP , Concerns about the growth of emerging markets seem to have caused a correction in the stock market. He said: "However, once investor sentiment falls to a more normal level, then the stock market may begin to rebound." He expects 200 Australian stocks to surge by more than 10% by the end of this year, closing above 5800 points. Will be mainly driven by resource stocks and industrial stocks.
The domestic economic data to be released this week include the National Bank’s business confidence survey report, new home sales report and monthly employment data.
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