Wednesday, 27 June 2018

Markets stable as buying opportunity seen amid trade tension

Markets were mostly little-changed on Tuesday.

The S&P 500 rose 0.2 percent while the STOXX Europe 600 and the Nikkei 225 were flat.

Trade tension remained a concern on Tuesday but some analysts are optimistic.

“Skittish buying interest returns to risky assets during a pause in the barrage of new U.S. trade restrictions,” said Ken Odeluga, market analyst at City Index, in a note.

“This is the beginning of an opportunity to buy equities at a discount,” said Chris Zaccarelli, chief investment officer at the Independent Investor Alliance.

Liz Young, senior investment strategist at BNY Mellon Investment Management, noted that “the economy is still strong, data is moving in the right direction, and we don’t see this as the issue that will turn things around”.

Byron Wien told CNBC on Tuesday that while the S&P 500 could test the February lows, he sees the index rallying thereafter “because earnings are coming through very powerfully”.

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