Wednesday, 25 January 2017

S&P 500 at new record as bull market continues

Markets mostly rose on Tuesday.

The S&P 500 rose 0.7 percent to a record high. The STOXX Europe 600 rose 0.3 percent, ending a three-day losing streak. In Asia, the Shanghai Composite rose 0.2 percent but the Nikkei 225 ended down 0.6 percent.

“Earnings are coming in generally better than expected while economic data are also good. We believe the medium-term bias in equity markets is to the upside,” said Karyn Cavanaugh, senior market strategist at Voya Financial.

However, Cavanaugh added that “there is a lot of complacency” and “we expect a lot of short-term volatility”.

CNBC reports that the Trump trade is back.

“Our take is that the longer-term bull market is continuing,” said Ari Wald, technical strategist at Oppenheimer. “I think the market could be up 10 percent this year.”

Ward McCarthy, chief financial economist at Jefferies, is less confident. He thinks the stock and bond markets “are going to be in range mode until something signals them to break one way or the other”.

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