Saturday, 11 February 2017

US stocks at new high, may see more gains despite Trump worries

Markets rose on Friday.

The S&P 500 rose 0.4 percent to a second consecutive record close.

The STOXX Europe 600 rose 0.2 percent for its fourth consecutive gain.

The Nikkei 225 surged 2.5 percent, leading other Asian stock markets higher.

Despite the record-breaking streak, Quincy Krosby, market strategist at Prudential Financial, noted that the “breadth of the market is very narrow”.

“Historically, a situation when valuations are stretched, breadth is narrow and complacency high, it sets a stage for pullbacks,” he said.

On the other hand, worries over President Donald Trump's policies may actually prove no impediment to a strong stock market performance.

While Trump has an approval rating of 45 percent according to the 3 February Gallup Poll, analysis from Ned Davis Research found that historically, a rating between 35 and 50 percent has been associated with an S&P 500 gain for the year of 12.4 percent.

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