Thursday 19 October 2017

Stocks rise amid positive global earnings trends and flattening yield curve

Markets rose on Wednesday.

The S&P 500 rose 0.1 percent, the STOXX Europe 600 rose 0.3 percent and the Shanghai Composite rose 0.3 percent.

“Overall, earnings are coming in very nicely,” said Wayne Kaufman, chief market analyst at Phoenix Financial Services.

“Economic data globally is confirming positive earnings trends,” said Maris Ogg, president of Tower Bridge Advisors.

Luiz Sauerbronn, director of the investments group at Brandes Investment Partners, said that European corporate profitability is “starting to recover now” while valuations are “very attractive relative to the US”.

One risk, though, is a flattening yield curve.

CNBC reported that this week, the spread between 2-year note yields and 10-year yields in the US reached near the lowest it has been since before the financial crisis.

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