LIVE MARKETS-What next after the V-shaped recovery

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WHAT NEXT AFTER THE V-SHAPED RECOVERY

After April's sharp slide, major stock indexes in the U.S., Germany and Britain are back at record peaks, but BNP Paribas Exane sees history repeating itself and relative calm in Q3.

"Similar to 1998, 2018 and 2020, post a V-shaped recovery in equity markets, a phase of consolidation is likely hereon," writes Dennis Jose, chief equity strategist at the French bank.

Jose believes there could be "a few corrections" in Q3 so the path might be bumpy but expects a re-acceleration in equity markets in Q4.

"With the US now committing to high deficits, Europe embarking on a fiscal frenzy, and China potentially announcing some stimulus in July, governments are running it hot in 2026," he says.

"And with the Fed likely to resume cuts at some point, and most others already cutting, central banks are also running it hot."

BNP Paribas Exane has therefore lifted its target for both the S&P 500 .SPX and STOXX .STOXX to 6,700 and 590 respectively, implying about 7% upside for both indexes.

(Samuel Indyk)

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EARLIER ON LIVE MARKETS:

CHINA-EXPOSED NAMES RISE, FTSE & DAX HIT PEAKS CLICK HERE

EUROPE BEFORE THE BELL: TARIFFS AND EARNINGS TOP OF MIND CLICK HERE

MARKETS SHAKEN, NOT STIRRED BY TRUMP'S TARIFFS CLICK HERE