Saturday, 24 February 2018

Markets rise but “premature” to say pullback is over

Markets rose on Friday.

The S&P 500 surged 1.6 percent, the STOXX Europe 600 rose 0.2 percent and the Nikkei 225 rose 0.7 percent.

JJ Kinahan, chief strategist at TD Ameritrade, called the Friday move in US stocks “very impressive”.

Doug Cote, chief market strategist at Voya Investment Management, is optimistic on stocks, suggesting that the rise in interest rates “is a sign that secular stagnation, disinflation…are finally in the rearview mirror”.

However, Shane Oliver, head of investment strategy and chief economist AMP Capital, said it is “premature” to conclude that the pullback is over “as it will take a while for markets to adjust to higher inflation, a more aggressive Fed and higher bond yields”.

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