S&P predicts turning point in 2010

Published: January 5, 2010

This year will be characterised by “guarded optimism” in the emerging markets, say analysts at ratings agency Standard & Poor’s.

In a new report, “Top 10 Expectations For Global Corporate Credit Markets In 2010”, the firm says 2010 could be a “turning point” for financial markets, with a “tepid recovery” in mature markets and cautious confidence in emerging markets.
Overall, the firm predicts improvements in macroeconomic fundamentals, continued repair in the financial sector, and some degree of recovery in the nonfinancial sector. But it added that there will be “bursts of volatility, particularly in the second half of the year as some of the emergency government support provisions approach their expiration date”.

The report highlights other key expectations for the year, including that emerging market corporates will initially dominate any revival in M&A activity as they take advantage of lower valuations in developed markets.