Currently markets are pricing in just one rate hike over the coming year but the Fed sees more. The pan-European STOXX 600 index is expected to gain more than 5 percent by the end of 2017 from Monday's closing level of 343.23. But analysts expect the Nikkei to gain over 11 percent from current levels by the end of 2017. Although emerging market equities have performed unevenly in 2016, stock markets there are expected to slightly outperform developed economies. Chinese stocks are forecast to rise 9 percent across 2017, and South Korea's KOSPI to climb 5 percent.

Source: The Edge Markets October 04, 2016 16:18 UTC