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The path for US equities will be uneven, driven by data & policy: Barclays

Michelle Zhu Published on Wed, Mar 22, 2017 / 12:21 PM GMT+8

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SINGAPORE (March 22): Barclays Capital is forecasting Standard & Poor’s (S&P) 500 earnings per share (EPS) to hit US$129 ($181) this year, assuming that a 5% sales growth combined with modest margin expansion and continued repurchases will lead to 8% EPS growth.

In a research report dated March 21, Barclays’ equity research team note that valuations have re-rated closer to “fair”, and that fund flows are still supportive.

Recent synchronised turn up in global economic data, inflation, earnings, sentiment, valuations and US fiscal policy expectations has forced investors to reassess these “moving targets" and the prospect for US equity returns through 2017, says the team.