Forecast for stock markets 2024: Financial expert sees positive influence of the changed interest rate environment and rising profit expectations.

Forecast for stock markets 2024: Financial expert sees positive influence of the changed interest rate environment and rising profit expectations.

According to a report by www.wienerborse.at,

After a turbulent 2022, the stock market experienced a brilliant rally in 2023, leading to annual or all-time highs. Falling inflation and a more robust than expected economy have driven this positive development. Market sentiment turned amid speculation about interest rate cuts by central banks and positive corporate earnings expectations. But how will the market develop in 2024?

According to analysts, market expectations point to interest rate cuts, which could have a positive impact on the stock market. Although the market is speculating too aggressively on interest rate cuts, experts believe that a changed interest rate environment will have a positive overall effect on the stock markets. The expected profits of companies and dividend yields also indicate a positive development.

However, given the high index levels, the question of valuation levels must be asked. While the USA is faced with relatively high valuations, the European market presents itself with more favorable P/E ratios. Nevertheless, the changing interest rate environment and solid earnings growth are expected to support the stock market. The experts expect above-average potential for the ATX due to its sector composition and favorable valuations.

Overall, financial experts remain optimistic about the future of the stock market. While there are short-term risks, the longer-term perspective points to further increases in global stock indices. The expected interest rate cuts and solid profit growth should provide a foundation for further positive developments in 2024.