Saturday, 24 June 2017

Stocks mixed as oil rebounds

Markets were mixed on Friday.

The S&P 500 rose 0.2 percent and the Nikkei 225 rose 0.1 percent. However, the STOXX Europe 600 fell 0.2 percent.

Oil rose on Friday with West Texas Intermediate crude rising 0.6 percent but it still ended down 4.4 percent for the week, its fifth consecutive weekly decline.

“There’s a bigger chance that stocks of most oil producers will fail to rise this year, after gaining in 2016,” said Ken Odeluga, City Index market analyst, in a research note.

The stock market as a whole, though, has not been significantly affected by the tumble in oil prices.

Bloomberg reported that the correlation between daily swings in the S&P 500 and crude has been roughly zero the past month, the lowest since January and far below the five-year highs reached in 2016 when oil last plummeted.

Friday, 23 June 2017

Markets flat amid opposing analyst views

Markets were mostly little-changed on Thursday.

In the US, the S&P 500 and Dow Jones Industrial Average both fell less than 0.1 percent but the Nasdaq Composite rose less than 0.1 percent.

Elsewhere, the STOXX Europe 600 was flat while the Nikkei 225 fell 0.1 percent.

The flattish market performances come as analysts appear divided on the direction of stocks.

Canaccord Genuity chief market strategist Tony Dwyer told CNBC on Wednesday that the stock market is a “terrific buy”.

This comes just two days after Gluskin Sheff chief economist and strategist David Rosenberg said on CNBC that the booming stock market is in “denial”.

Thursday, 22 June 2017

Stocks fall as oil tumbles again

Markets fell on Wednesday.

The S&P 500 fell 0.1 percent, the STOXX Europe 600 fell 0.2 percent and the Nikkei 225 fell 0.5 percent.

Stock markets were weighed down by another decline in oil prices on Wednesday. West Texas Intermediate fell 2.3 percent and Brent fell 2.6 percent.

Oil fell despite the US Energy Information Administration reporting on Wednesday that domestic crude supplies fell by 2.5 million barrels for the week ended 16 June, as the report also showed that weekly domestic production rose by 20,000 barrels to 9.35 million barrels a day.

Wednesday, 21 June 2017

Markets fall, oil in bear market

Markets were mostly lower on Tuesday.

The S&P 500 fell 0.7 percent and the STOXX Europe 600 fell 0.7 percent.

Earlier in Asia, the Nikkei 225 rose 0.8 percent but the Shanghai Composite fell 0.1 percent.

Oil fell on Tuesday. West Texas Intermediate crude fell 2.2 percent and is now in bear-market territory. Brent fell 1.9 percent.

“The assumption that extended OPEC supply cuts would underpin the oil price is unraveling by the day,” wrote London Capital Group senior analyst Jasper Lawler.

Also on Tuesday, MSCI announced that China’s domestic equities will join its benchmark indices.

Tuesday, 20 June 2017

S&P 500 hits record high but high tech valuations a concern

Markets rose on Monday.

In the US, the S&P 500 rose 0.8 percent to a record high as the Nasdaq Composite jumped 1.4 percent.

The STOXX Europe 600 rose 0.9 percent and the Nikkei 225 rose 0.6 percent.

Peter Lewis, a managing partner at Murphy Capital Management, said that tech valuations are probably near the high end of the band, “but if earnings and merger activity keep going, that could bode well for the sector”.

However, Phil Davis, chief executive officer at PSW Investments, said that 5,600 on the Nasdaq is a key level and warned: “If we fail to hold 5,600, then you will begin to see panic setting in as fund managers are forced to consider the reality of their overvalued holdings.”

Monday, 19 June 2017

Stocks near record highs but "not about to crash"

US stocks had a mixed performance last week. The Dow Jones Industrial Average rose 0.5 percent to finish at a record high but the S&P 500 was flat and the Nasdaq Composite fell 1 percent.

Still, all three stock indices are at or near record highs, with many investors viewing stocks as overvalued.

However, James Connington at The Telegraph wrote last week that stock markets "are not about to crash".

The reasons are as follows:
1. The global economic recovery isn't over
2. Centrals banks won't let them
3. Company profits are growing
4. Cash is already sitting on the sidelines
5. Investors aren't 'irrational' yet

In addition, JPMorgan has pointed out that the much-touted concern that the stock market's rally has been concentrated in growth stocks may be misplaced.

"While equity leadership has been narrowing into growth stocks, history suggests it is not at extreme levels and not far from historic norms," JPMorgan equity strategists wrote in a note.