- Singapore equities hit 2026 on a firmer footing on resilient external demand, a constructive macro backdrop, and nearing rate easing cycle. With US Federal Reserve (US Fed) cuts and dipping local rates improving funding conditions, yield strategies and REITs regain relevance, while earnings growth broadens across cyclical/defensive sectors.
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Global growth to accelerate.
- The global economy’s GDP is slated to accelerate to 3.5-3.7% in 2026, up from an estimated 3.2-3.3% in 2025. This improvement reflects resilient consumption, steady investment flows, and investors’ continued risk-on appetite, which are likely to remain defining themes.
- Yield-chasing behaviour will persist as markets adjust to a lower-for-longer interest rate environment, reinforcing demand for equities and alternative assets.
Maintain constructive on US growth.
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- Risks to the outlook include the potential formation of an artificial intelligence (AI)-driven asset bubble and supply chain strains linked to rare earth materials, which are critical to the US tech and defence industries. If these risks intensify, they could weigh on growth momentum.
Slowdown in China growth.
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