Tuesday, 1 September 2015

After August fall, bull trend for stocks may be broken

Global stocks ended August with yet another decline on Monday.

The Shanghai Composite Index fell 0.8 percent on Monday to compete a 12.5 percent decline in August, its worst monthly fall since August 2009.

The S&P 500 also fell 0.8 percent on Monday to finish August with a 6.3 percent loss, its worst monthly loss since May 2012.

The STOXX Europe 600 Index slid 0.1 percent to extend its monthly drop to 8.5 percent, the worst in four years.

While some analysts have remained optimistic about markets despite the beating received in recent weeks, others are less so.

Mark Newton, a technical analyst and director at Greywolf Execution Partners, said that “the broader trend remains broken”.

Lindsey Group’s chief market analyst Peter Boockvar thinks that the bull market may be ending. “The ups and downs of the business cycle can’t be suspended forever by constantly manipulating interest rates,” he said.

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