Citi Global sees bearish times for global bourses

Citi Global, in its latest report, has given a very bearish outlook for global equity markets, for the next four months.

"We have gone from being concerned with equities,'' the CitiFX Technicals report said, ''to believing a major correction is now on the cards."

The correction may be led by Europe and result in double digit percentage falls in coming months.

The London Stock Exchange listed FTSE 100 Index and Germany's Deutsche Aktien Xchange 30 (DAX) look like two leading candidates for moving downhill. While FTSE is expected to fall in the region of 15%, DAX could go down by 30% in the next 3-4 months.

This does not derail the longer-term bullish view for equities in 2008, but it strongly suggests a very uncomfortable 3-4 months ahead.

"It's highly unlikely that the US or other markets will escape this rout, if it comes. On a scale of 1-10 (1 being low, 10 high), in terms of the level of concern, we would rate this risk at about 9.9," the report said.