n the eurozone, by contrast, consumers should be the mainstay, and growth is only expected to slow slightly to 0.9 percent against 1.1 percent last year. Much will depend on how well Brexit is implemented. If it goes well, exports could provide a positive surprise. DWS expects the Euro Stoxx 50 to rise to 3,770 points by the end of the year. For the Dax, it predicts a slight increase to 14,000 points by the end of 2020.
Emerging markets to be the growth engine
Emerging markets (EM), which now account for 60 percent of global economic output, should provide the global economy with a stronger impetus this year. Despite a slight slowdown in China, EM economic growth should pick up to 4.4 percent – from 4.2 percent last year. Above-average earnings growth and moderate valuations could then translate into rising share prices. However, a flare-up of the trade conflict and the ongoing protests in Hong Kong could create risks. DWS expects the MSCI Emerging Markets index to reach 1,120 points this year.
