Markets unlikely to bottom out soon amid recession fears: Nomura

As regards valuations, Nomura believes stocks have largely (if not fully) priced in expectations of higher policy/discount rates. They expect the markets to remain choppy in the near-term

Global stock markets are unlikely to bottom out soon amid recession fears, according to analysts at Nomura, who expect the US economy to see five straight quarters of declining GDP (gross domestic product) growth. The silver lining, however, is that the recession will be shallow - a peak-to-trough decline in US real GDP of around 1.5 per cent in this cycle compared to declines of nearly 10 per cent during the pandemic and around 4 per cent during the GFC, Nomura said.

“History shows that stocks