PARIS—There appears to be a disconnect between the recent surge in stock markets and the global economy’s underlying strength, the Organization for Economic Cooperation and Development (OECD) warned Tuesday. Many indexes, particularly in the U.S., have rallied over the winter to hit record highs. The OECD noted, however, that expectations for company earnings in the U.S. and Europe have not been revised up on the whole. “In financial markets, there are apparent disconnects between the positive assessment of economic prospects reflected in market valuations and forecasts for the real economy,” the Paris-based organization said in its latest economic outlook. The OECD predicts that global economic growth this year will be 3.3 per cent and rise to around 3.6 per cent in 2018.

Source: thestar March 07, 2017 17:15 UTC