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SSGA: Mkt Outlook for 2026 Cautiously Optimistic; Fed Estimated to Make Max. 3 Rate Cuts
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State Street Global Advisors (SSGA) released the Global Market Outlook 2026: Forward with Focus maintaining a 'cautiously optimistic' stance on the market outlook for 2026.

The upside risks from tariff uncertainties outweigh the downside risks, benefiting from the rise of AI and the introduction of more fiscal stimulus policies and other positive factors in major markets.

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The Fed will have room to make a maximum of 3 rate cuts in 2026. The Bank of England (BoE) has been a laggard in the easing journey, and is expected to catch up in the coming quarters.

The European Central Bank (ECB) will pause rate adjustments in the short term, the report added. Meanwhile, the Bank of Japan (BoJ) may extend its approach of cautiously hiking rates.
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