“European stock markets have enjoyed a rally over the course of this year to date just as most others have as well. But, fundamentally — that said — we do think profit growth is going to be pretty weak this year,” Goldman Sachs’ Peter Oppenheimer told CNBC on Friday.
Goldman Sachs reiterates its bullish call on Netflix, telling clients shares could rally nearly 50 percent in the next 12 months. “We believe Netflix represents one of the best risk/reward propositions in the Internet sector,” analyst Heath Terry writes.
Goldman’s somber assessment came only weeks after the bank said the negative impact of falling stocks and rising interest rates would likely to be offset by higher wages and oil prices in retreat.
Goldman Sachs has been under scrutiny for its role in helping raise $6.5 billion through three bond offerings for 1MDB, which is the subject of investigations in at least six countries.
The U.S. Department of Justice has said about $4.5 billion was misappropriated from 1MDB, including some money that Goldman Sachs helped raise, by high-level officials of the fund and their associates from 2009 through 2014.
Although the stock market rallied on Powell’s statement and bond yields fell, some economists believe the markets misinterpreted the Fed’s message
“This is the return to normality,” James Ashley, head of international market strategy, said at a briefing in Singapore. “We think emerging markets are being oversold. We would see this as an attractive entry opportunity.”