Wednesday, 28 September 2016

Stocks rise, may see increased volatility

Stocks rose on Tuesday.

The MSCI world index rose 0.3 percent. The S&P 500 rose 0.6 percent while the STOXX Europe 600 Index added less than 0.1 percent.

The yield on the US 10-year Treasury note fell three basis points to 1.56 percent.

West Texas Intermediate oil fell 2.7 percent.

Oppenheimer technical analyst Ari Wald thinks that stocks are likely to continue to rise.

"We're not seeing the type of euphoria that you typically see at a major top in the market," Wald said on CNBC on Monday.

In contrast, Kathy Lien, a macro strategist and currency trader at BK Asset Management, told CNBC that there could be "a deeper correction in stocks", including a "Christmas collapse".

In any case, with the approach of October, volatility in the stock market could rise.

A CNBC report noted that October has been a volatile month for stocks during an election year. Since 1992, the CBOE Volatility Index has risen in each of the six presidential-year Octobers, spiking an average 21 percent.

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