Equities across the world fell to their lowest since August in the week ended Sept. 25, as investors weighed prospects of new aid to lift the world’s largest economy, renewed lockdown in Europe and the outlook for the coronavirus pandemic.
“Markets are digesting and grappling with this idea that growth expectations investors have might not materialise,” Bloomberg quoted Lauren Goodwin, economist and multi-asset portfolio strategist at New York Life Investments, in a report. “As the fiscal impulse in the U.S. starts to wane, some of these expectations for a slow and steady recovery are shaken.”
The S&P 500 is on course to record its first monthly slide since March, and CLSA’s Laurence Balanco sees little signs of the correction abating. After breaking below its below 20- and 50-day moving averages, the benchmark is seen taking support at 3,191-3,200 area, he said.
“While…
