· Canada's TSX to hit record high in 2021 on likely vaccine rollout: Reuters poll
Canada’s main share index is set to extend its rally over the coming year as the likely rollout of a COVID-19 vaccine bolsters prospects for the economically sensitive financial and resource stocks that dominate the index, a Reuters poll found.
The median forecast in a survey of more than 20 portfolio managers and strategists was for the S&P/TSX Composite index to rise nearly 8% to 18,400 by the end of 2021. That was higher than the 18,000 forecast in August’s poll, and would surpass February’s record high of 17,970.51.
The index has rebounded from an eight-year low in March at 11,172.73.
· Global stocks hit record high as Biden, vaccine lift investor outlook
World shares rallied to a record peak on Wednesday following an overnight surge that saw the Dow Jones benchmark crack 30,000 for the first time as investors cheered a dramatically improved global outlook.
The formal start of U.S. president-elect Joe Biden’s transition to the White House and increasing confidence a COVID-19 vaccine would be ready soon ushered in renewed appetite for global shares.
After weeks of waiting, President Donald Trump’s administration on Monday cleared the way for Biden to prepare for the start of his administration, giving him access to briefings and funding.
That pushed MSCI’s broadest gauge of world stocks up 0.1% to a record level.
· Japan shares end higher as Dow hits record high on Biden transition
Japan shares closed firmer on Wednesday, taking positive cues from Wall Street as the Dow Jones benchmark scaled a record high overnight, with investor sentiment lifted by vaccine optimism and fading U.S. election uncertainty.
The Nikkei share average climbed 0.5% to close at 26,296.86. The index ended at a 29-1/2-year high on Tuesday.
The broader Topix added 0.3% to 1,767.67, extending slight gains from a more than two-year high marked in the previous session.
The Dow Jones broke past 30,000 for the first time and the S&P 500 also closed at a record high as investors anticipated a swift economic recovery on coronavirus vaccine progress and President-elect Joe Biden’s transition to the White House.
Surging coronavirus cases in several parts of Japan also dampened market sentiment.
· Nikkei faces correction before gains next year: Reuters poll
Japanese shares will likely see a correction in the near term following a global rally fuelled by coronavirus vaccine hopes, but will rise next year to their highest levels in three decades, a Reuters poll published on Wednesday showed.
The median estimate in the poll of 26 analysts and fund managers surveyed Nov. 12-23 put the benchmark Nikkei index finishing 2020 at 26,000.
That is slightly below the index’s close on Tuesday of 26,165.59, but nearly 12% higher than the previous Reuters poll in August that forecast the index at 23,300 at year’s end.
The median forecast in the poll expects the Nikkei to remain at 26,000 by next June before rising to 27,350 at the end of 2021, which would be its highest level since August 1990.
· China stocks post biggest intraday fall in nearly a month as EV stocks drag
China shares closed lower on Wednesday, posting the biggest intraday loss in nearly a month, as electric vehicle stocks fell on news of a government investigation into the sector.
At the close, the Shanghai Composite index was down 1.19% at 3,362.33, the biggest slump within a day since Oct. 30.
The blue-chip CSI300 index was down 1.28%, with its new energy vehicle sector sub-index lower by 2.16%, the consumer staples sector down 2.52% and the healthcare sub-index down 2.16%.
· Indian stock market rally to continue in 2021 on vaccine hopes
India’s stock market rally is set to continue and hit new record highs in 2021, according to a Reuters poll of equity strategists who overwhelmingly expected corporate earnings to return roughly to pre-pandemic levels within a year.
The Nov. 12-24 Reuters poll of over 35 equity strategists predicted the BSE Sensex index, which is currently trading at a record high, would set new all-time peaks in the next year. It was forecast to rise about 3% from Tuesday’s high to 45,750 by mid-2021.
It was then predicted to rise another 4% to 47,550 by the end of 2021, with forecasts ranging from 36,000 to 54,400.
· European markets open higher as U.S. political certainty and vaccines boost sentiment
European stocks opened higher Wednesday as growing political certainty in the U.S. and positive coronavirus vaccine news boosts global sentiment.
The pan-European Stoxx 600 index opened 0.2% higher with most sectors in positive territory.
Positive coronavirus vaccine news and emerging political certainty in the U.S. have prompted global stock markets to rally.
· Flirting with record highs: European stocks back to normal in 2021: Reuters poll
Optimism around vaccine developments and expectations of a strong bounce in corporate confidence and profitability will push European stocks to near record highs next year, as policymakers look set to keep stimulus flowing.
A Reuters poll of 26 fund managers, strategists and brokers surveyed over the past two weeks expects the STOXX 600 to climb to 430 points by the end of 2021, just a whisker below February’s record highs, as economic activity returns to normal following the COVID-19 downturn.
That is a 10.6% rise from Monday’s closing price. It also represents a 60% jump from the 268 points low hit in March when lockdowns imposed across the world to limit the pandemic’s spread triggered a rush to safety across global markets.
Promising results from three major pharmaceutical companies on their vaccine trials encouraged a wave of optimism across global stock markets, with the latest poll signalling a dramatic change in expectation for the STOXX 600.
Reference: Reuters, CNBC
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