Public investment funds predict better equity earnings over next year -survey By Reuters –
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© Reuters. FILE PHOTO: Euro, Hong Kong dollar, U.S. dollar, Japanese yen, pound and Chinese 100 yuan banknotes are seen in this picture illustration, January 21, 2016.

REUTERS/Jason Lee/Illustration/File Photo

LONDON (Reuters) – Pension and sovereign wealth funds forecast improved earnings for listed companies over the next year, but interest rate rises pose the greatest risk to financial market stability, a survey published on Friday showed.

Global shares have pushed to record highs as economic activity begins to scale up after the COVID-19 pandemic that ravaged equity markets and the global economy last year.

A recent Reuters poll of analysts found that most expected the rise in stocks to continue this year. Consistent with that view, a total of 68% of respondents to the Sovereign Wealth Fund Institute (SWFI) second quarter survey predicted a rise in earnings by at least 10% in the next year.

But the greatest threat to financial market stability was a rise in interest rates, according to survey respondents, more...