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2026-10-16 15:53:30 Citi published a research report stating that EPS growth for global listed companies is expected to remain strong next year, although the market will face two key risks: slowdown and concentration. The bank noted that the pace of global EPS growth is forecast to slow by around 20 ppts in 2027 forecasts. Such a magnitude of deceleration would typically imply near-zero equity market returns. However, the bank found that in years similar to the 2027 forecast scenario, when earnings growth remains positive but is slowing, global equity markets still rose by an average of about 4%, although market leadership tended to become more defensive. On concentration, the 2027 forecast could become one of the narrowest years on record for EPS growth breadth, with tech stocks expected to contribute around 70% of global earnings growth. The bank believes EPS concentration has limited correlation with overall market performance, while sectors accounting for a relatively high share of earnings growth tend to outperform in the initial stage. The bank said that amid headwinds from geopolitics, interest rates and artificial intelligence sentiment, the market will continue focusing on whether optimistic forecasts can be achieved. Citi maintained its view that global equities will continue to be driven higher by earnings growth heading into 2027. (da/ad)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |