Tuesday, 12 December 2017

Markets rise but “danger of a bubble” in some large stocks

Markets were mostly higher on Monday.

The S&P 500 rose 0.3 percent to a record high and the MSCI Asia Pacific Index rose 0.7 percent. However the STOXX Europe 600 fell less than 0.1 percent.

Oil rose, with West Texas Intermediate crude rising 1.1 percent.

As stocks continued to rise ever higher, at least one fund manager thinks that some of the world’s biggest companies have become overvalued and could be hiding big risks.

Robert Naess, who manages stock investments at Nordea Bank AB, told Bloomberg that companies such as Amazon.com Inc and Alibaba Group Holding Ltd are overvalued and there is “danger of a bubble in them”.

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