Global Stock Markets Near All-Time Highs This Year

Korea Economic Daily

Summary

The MSCI All Country World Index was reported to be just 0.5% away from its all-time high.
Analysts surveyed by Bloomberg expect the MSCI global equity benchmark to rise 11% over the next 12 months.
Major institutions such as Morgan Stanley and Nomura Holdings have upgraded their investment outlooks for US stocks, Treasuries, and Chinese equities.

MSCI World Index Just 0.5% Away From Record High of 887.72

Analysts Forecast '11% Further Gain' for MSCI World Index

Global stock markets are approaching all-time highs. Some analysts anticipate further gains driven by active buying.

According to Bloomberg on the 3rd (local time), the MSCI All Country World Index is now just 0.5% away from surpassing its all-time high of 887.72, set on February 18. This index has rebounded 19% from its early April low, when President Trump announced reciprocal tariffs causing global markets to tumble.

Investor risk appetite is on the rise, as most of the United States’ major trading partners have been temporarily exempted from tariffs. Stock markets in Europe, as well as in Japan and South Korea, have recouped or reduced losses triggered by Trump’s tariff announcement in early April.

According to analyst estimates collected by Bloomberg, the MSCI global equity benchmark is expected to climb 11% over the next 12 months. Wall Street strategists have also recently started raising asset allocation for major markets.

Morgan Stanley strategists upgraded their outlook for US stocks and Treasuries last month, expecting corporate earnings and bond market conditions to improve thanks to forthcoming Federal Reserve interest rate cuts. Nomura Holdings strategists also upgraded their stance on Chinese equities to 'tactical overweight.'

Investors are keeping a close watch on US-China trade tensions, with attention focused on whether President Trump and Chinese President Xi Jinping will engage in talks to ease tensions. The two countries have continued to accuse each other of violating the Geneva trade agreement signed in May.

George Maris, Chief Investment Officer of Principal Asset Management and Head of Global Equities, told Bloomberg TV, "There is ample room for reasonable compromise, as constructive solutions are in the best interests of both countries."

By Jung-A Kim, Guest Reporter kja@hankyung.com