Tuesday, 19 June 2018

Markets fall on trade concerns but breadth suggests strength ahead

Markets fell on Monday.

The S&P 500 fell 0.2 percent, the STOXX Europe 600 fell 0.8 percent and the Nikkei 225 fell 0.8 percent.

Markets were weighed down by concerns of a trade war between the US and China.

“If the current trade skirmish with China were to escalate into a full-blown trade war, it could potentially have a materially negative impact on corporate earnings growth,” said Alec Young, managing director of global markets research at FTSE Russell.

The Russell 2000 did rise 0.5 percent to a record high on Monday. Small-cap stocks are perceived as being more insulated from trade issues.

Indeed, Ryan Vlastelica at MarketWatch noted that market breadth has held up in the US stock market, and that could indicate stock market strength ahead.

No comments:

Post a comment