Tuesday, 14 February 2017

Stocks rise, time for bears to throw in the towel?

Stocks rose on Monday.

The S&P 500 rose 0.5 percent to close at a record high for the third consecutive day.

The STOXX Europe 600 rose 0.8 percent, rising for a fifth day and hitting its highest close since 7 December 2015.

Asian stocks also rose. The Nikkei 225 rose 0.6 percent while the Shanghai Composite Index rose 0.4 percent.

“The combination of proposed regulatory and tax reform, stronger than expected earnings amplified by growing consumer sentiment that President Trump will accomplish a large portion of his agenda has permitted stock to rise to valuations not experienced since 2004,” said Kent Engelke, chief economic strategist at Capitol Securities Management Inc.

Indeed, Mark DeCambre at MarketWatch said: “It may be high time for stock-market bears to throw in the towel.”

DeCambre noted that despite “suspiciously low fear gauge” and “heady stock valuations”, global stocks have been rallying.

DeCambre quoted Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, as saying: “Usually you have some pull back. We really didn’t have that pull back, we held those gains, which is major.”

Oil did not join the rally on Monday though. West Texas Intermediate crude fell 1.7 percent while Brent fell 2 percent.

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