Wednesday, 10 May 2017

Markets mixed but bull market "still intact"

Markets were mixed on Tuesday.

In the US, the S&P 500 slipped 0.1 percent but the Nasdaq Composite rose 0.3 percent to close at another record high.

European stocks rose, with the STOXX Europe 600 rising 0.5 percent to end at its highest level since August 2015.

Asian stocks were mixed. The Nikkei 225 fell 0.3 percent but the Hang Seng Index jumped 1.3 percent.

Some analysts remain optimistic.

“The bull market is still intact and in the absence of negative news we may see prices drift higher,” said Randy Frederick, managing director of trading and derivatives at Schwab Center for Financial Research.

“The risk-on trade is in full swing and traders are considering the recent pullback in the European market as an opportunity,” said Naeem Aslam, chief market analyst at Think Markets.

Other analysts are more cautious.

“This is a market that needs an unequivocal solid package of economic data to move higher,” said Quincy Krosby, chief market strategist at Prudential Financial in the US.

There are also doubts on European stocks.

“Market-wise, this is the end of the European rally,” said Steen Jakobsen, chief economist at Saxo Bank, in a note on Monday. “We came into this election convinced that Macron would win and believing euro assets were undervalued; this has now run its course.”

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