LONDON Nov 29 French investment bank Societe
Generale said on Thursday global equity markets are poised for
stronger returns in 2017 as a mix of inflation, stronger
economic growth and shareholder-friendly policy boosts appetite
Societe Generale sees the U.S. S&P 500 at 2,400 by
the end of 2017, with Europe's STOXX 600 at 370 and
Japan's Nikkei at 20,500, implying upside of 9-12 pct.
While the S&P has managed gains of around 8 percent in 2016,
the Nikkei and STOXX 600 are down around 4 and 7 percent
respectively. But hopes for more fiscal stimulus following the
election of Donald Trump as U.S. president support the view that
the outlook for growth and inflation should improve in 2017,
"After a flattish 2016, we expect global equities to deliver
higher returns in 2017 thanks to stronger economic growth,
higher inflation prints and more active shareholder policies,"
strategists at Societe Generale said in a note.
However, political uncertainty in the first half of the year
and the potential for protectionist trade policies from the
United States are identified as the main risk for global
Soc Gen sees the euro zone Euro Stoxx 50 at
3,300 by the end of 2017, a 9.4 percent rise, Britain's FTSE 100
at 7,500, a 10.7 percent rise, and Germany's DAX
at 12,000, a 13.6 percent rise.
(Reporting by Alistair Smout. Editing by Vikram Subhedar)