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In its latest market report, Citibank highlights downside risks for the global equities, especially for the Wall Street benchmarks, while citing the absence of further stimulus and the coronavirus (COVID-19) resurgence hit during the short-term.

Key quotes

Investors have become uninterested in worrying about downside risks.

Vaccine news has further buoyed spirits with several therapeutic/preventative lights now at the end of the pandemic tunnel being another set of positive data points.

The market is either “anticipating an even stronger 2021 profits outlook possibly tied to rapid inoculation-driven recovery and continued corporate cost containment, or the S&P 500 may be ahead of itself in the near term, particularly when considering no new short-term fiscal stimulus and the impact of second-wave outbreaks.

Bulls catch a breather…

Global equity market bulls stepped back at the end of November but kept the heavy gains earned through the month. The same highlights fears of a pullback in the equities.

Read: Wall Street Close: Snap-back as month-end profit bookings kick-in