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The
forecast was published in the bank's weekly report on fund flows
that showed investors continued to shun U.S. and European
equities, pulling $7.7 billion from stocks in the week to April
3 and piled further into bond funds adding $11.4 billion. The
report is based on EPFR data.
That marked the 13th straight week of bond inflows as worries
about the slowing global economy pushed investors into assets
considered safe in times of economic and political strife.
Some $7.5 billion was ploughed into investment grade bonds, $1.3
billion into high-yield bonds and $1.3 billion into emerging
market debt.
That contrasts with $2.6 billion out of European equities, $1.6
billion out of U.S. stocks.
Technology was the only equity sector winner with $1 billion
inflows, it said. The Philadelphia Semiconductor index hit
record highs on Wednesday on hopes that Washington and Beijing
are close to resolving their trade spat and bets that the drop
in industry demand is close to bottoming out.
The bank's strategists said they expect the U.S. stock market to
peak in the current quarter after hitting all-time highs fueled
by gains in banks and oil stocks.
A 3,000 level would mark a 4 percent rise from Thursday's close.
The index touched a record high in September of 2,940.
Global equities have been on a tear this year, bouncing back
from the massive rout toward the end of 2018 after U.S. and
European central banks took a more dovish stance on rate policy
and on hopes of an imminent U.S.-China trade truce.
The S&P500 has risen 23 percent so far this year.
(Reporting by Josephine Mason, Editing by William Maclean)
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