Moderate, positive equity market returns can be expected this year, says BMO Harris Private Banking’s ‘April Market Commentary Report.’ However, equity markets will outperform weak but positive fixed income returns. It is projecting a year of global economic growth, although the political uncertainty in the eurozone governments and the commitment of their governments to fiscal austerity has been a concern for market participants. As well, while the tone of U.S. economic data released during April was slightly weaker than in the past few months, the report anticipates the U.S. economy will grow at a modest pace, with particular strength in manufacturing. While the report predicts equity markets will have positive returns over the next year, a slow summer is anticipated given the issues in the eurozone and market reaction to the U.S. election process which is gearing up.
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