Friday, 30 March 2018

Markets rise but central bank tapering looms

Markets rose on Thursday.

The S&P 500 jumped 1.4 percent, the STOXX Europe 600 rose 0.4 percent and the Nikkei 225 rose 0.6 percent.

Some analysts appear to be regaining confidence in the market.

“We believe the correction has likely run its course and is now working its jagged way back to breakeven,” said CFRA’s Sam Stovall.

“This is still a fundamentally sound economy, and the market is seeing ghosts where there aren’t any,” said CrackedMarket’s Jani Ziedins.

Thomas H. Kee Jr, founder of Stock Traders Daily, is more concerned.

Kee said that demand for global assets had been propped up by central banks. However, with central banks tapering their assets purchases, demand for assets have fallen.

“Looking ahead, when the Fed removes an additional $30 billion in April, it will get even worse,” he concluded.

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