Tuesday, 13 February 2018

Markets continue rebound as some see pullback as overdone

Markets rose on Monday.

The S&P 500 surged 1.4 percent, the STOXX Europe 600 jumped 1.2 percent and the Shanghai Composite rose 0.8 percent.

Despite the rebound in the last two trading sessions, Kent Engelke, chief economic strategist at Capitol Securities Management Inc, said he found the recent volatility “paralyzing”.

“Over the short term, the selloff is likely to persist for the next few weeks because we are still in an adjustment period with people focusing on inflation data,” said Lisa Erickson, head of traditional investments for U.S. Bank Wealth Management.

Still, some strategists are optimistic.

“We may have moved from being ‘overdue’ for a pullback to approaching ‘overdone,’” Mark Haefele, the Zurich-based global chief investment officer for UBS Wealth Management, said in a note to clients.

Steven Andrew, a London-based multi-asset fund manager at M&G Investments, said: “Our predisposition would be to add equity exposure.”

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