Tags: markets | Europe | Ebola | forecast

CNBC Survey: Financial Markets More Worried About Europe Than Ebola

By    |   Tuesday, 28 October 2014 01:32 PM

While hordes of Americans are worried about the spread of Ebola, financial market participants are more worried about Europe's economic slowdown, according to a CNBC survey.

The 39 money managers, economists and advisers polled see the European economic slowdown as the biggest global threat.

And they are twice as concerned about Europe as they are about Ebola's impact on the global economy. Market participants view an economic slowdown in Asia as the next biggest risk after Europe, followed by the Mideast terrorist group ISIS and the turmoil in Ukraine.

Europe's economic stagnation also is seen as the biggest threat to the U.S. economy, ahead of both slow job growth and tax and regulatory issues.

Eurozone GDP rose only 0.1 percent in the second quarter from the first.

The respondents reduced their outlook for the S&P 500 for this year and next year. They expect the S&P 500 to end the year at 1,999, down from an expected 2,032 in September's survey, and to end 2015 at 2,111, down from 2,149.

They also lowered their forecast for the yield on the 10-year Treasury to 2.49 percent in 2014, from the previously expected 2.76 percent, and to 3.19 percent in 2015, from 3.45 percent.

The respondents now forecast, on average, the first rate hike in July 2015, a month later than in the September survey.

Meanwhile, financial experts are clearly skeptical about the European Central Bank (ECB)'s stress test of 150 banks, which showed only 13 have inadequate capital.

"Should you buy into the ECB's rhetoric that this was robust analysis and we can put problems in the banking sector behind us? I remain skeptical," Julian Chillingworth, chief investment officer at Rathbones, tells The Wall Street Journal.

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While hordes of Americans are worried about the spread of Ebola, financial market participants are more worried about Europe's economic slowdown, according to a CNBC survey.
markets, Europe, Ebola, forecast
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2014-32-28
Tuesday, 28 October 2014 01:32 PM
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