November 1, 2011 / 8:11 AM / 8 years ago

Credit Suisse boosts S&P 500 year-end target

(Reuters) - The chances of a U.S. recession occurring has fallen to 25 percent from 35 percent, Credit Suisse said and raised its year-end and 2012 targets for the S&P 500 index .SPX.

Strategist Andrew Garthwaite boosted his year-end target for the Standard & Poor’s 500 Index to 1,270 from 1,180, and his 2012 target for the index to 1,340 from 1,260.

“US macro surprises are positive for the first time since April and our lead indicators are now consistent with 1.9 percent US GDP,” Garthwaite wrote in a note to clients.

In addition, it is more likely that a third round of quantitative easing (QE) will be seen in the U.S. over the next six months, Garthwaite said, noting that UK and Japan have both stepped up QE.

The S&P 500 index closed down 31.80 points, or 2.47 percent, at 1,253.30 on Monday, as failure of trading firm MF Global Holdings Ltd and new worries about Europe’s crisis hammered financial shares.

Reporting by Tenzin Pema in Bangalore; Editing by Joyjeet Das

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