Wednesday, 2 September 2015

Markets fall but analysts remain optimistic on US stocks

August may be over but market turmoil is not.

China started the ball rolling downhill on the first day of September. The Shanghai Composite Index fell 1.2 percent on Tuesday. It was down 4.8 percent at one stage of the trading session before recovering on suspected government buying.

A report on Tuesday had shown that the official manufacturing purchasing managers’ index fell to 49.7 in August from 50 in July.

The STOXX Europe 600 Index fell 2.7 percent on Tuesday while the S&P 500 plunged 3.0 percent.

Despite the continuing declines, many analysts remain optimistic on US stocks. Among 21 brokerages tracked by Bloomberg, 17 have not changed their projections for the Standard & Poor’s 500 Index after August’s selloff, maintaining forecasts that imply a 12 percent rally by the end of the year.

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