The Australian sharemarket will barely rise over the year despite a broader economic slowdown allowing the Reserve Bank of Australia to cut interest rates more rapidly than expected, Morgan Stanley says.
The Wall Street investment bank has downgraded its year-end forecast for the S&P/ASX 200 from 8500 points to 8000, suggesting just a 2.3 per cent upside from the benchmark’s close of 7819.1 late last week.
Chris Nicol, the bank’s equity strategist, said that while Australia had “levers to weather the storm in a relative sense, meaningful upside seems capped”. “We acknowledge the likelihood that equities will continue to experience a level of de-rating in the multiple paid for earnings,” he said.
Source: https://www.afr.com/markets/equity-markets/asx-to-drop-as-morgan-stanley-slashes-price-forecast-20250417-p5lslk