Expect low returns in coming years

New York

GLOBAL markets from stocks to bonds are "priced to offer low absolute rates of return" in coming years, with equities, particularly in Japan, poised for the biggest gains, according to Goldman Sachs Group Inc.

Japan's Topix index will rise 18 per cent by the end of 2015, while the S&P 500 Index will increase about 3 per cent, according to analysts including Dominic Wilson who focus on translating Goldman Sachs' economic views into market forecasts. Yields on sovereign bonds from the US to Japan and Germany will climb as the global economic recovery broadens while commodities from oil to gold will stay low after recently tumbling, the analysts predicted.