The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Corporate fundamentals on strong footing

Investors are set to be happily surprised by the strength of company earnings which will sustain stock markets while strong economic data confirms the continued caution surrounding corporate bonds, according to analysts at Standard Life Investments. Productivity and profitability, according to Standard Life, provide the positive factors in its quarterly outlook.

"We remain optimistic on equities on several grounds," says Andrew Milligan, head of global strategy. "Profits look set to exceed expectations while market valuations are supportive. This view is based on our analysis of the factors driving strong productivity growth in the US and other economies, as well as demand especially in Asia."

Increasing consumer demand is being met by improved productivity ? rather than increases in the workforce ? which comes as a result of increased investment dating from before the most recent global downturn.

Milligan adds: "Stimulative monetary policy has been a critical ingredient in generating economic recovery. A number of central banks are taking action, or close to acting, to prevent future inflationary pressures. We do not expect central banks to be aggressive; the main aim of policy makers is still to ensure that the current phase of growth can be sustained."

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree