Monday, 11 June 2018

US stocks could “progress” even as G7 talks fail

US stocks rose last week. The Dow Jones Industrial Average rose 2.8 percent, its biggest weekly gain since March. The S&P 500 rose 1.6 percent and the Nasdaq rose 1.2 percent, both posting their third consecutive weekly gain.

Markets may start this week in sombre mood though after the Group of Seven meeting in Canada over the weekend failed to resolve a trade dispute between the US and the rest of the group.

US President Donald Trump left the meeting early, warning Canada, Japan and Europe that “the gig is up”.

However, MarketWatch reported that Guild Investment Management thinks that US stocks could see more gains.

“U.S. trade policy will produce results; over the summer there will be volatility, and eventually, progress,” said Monty Guild and his team of strategists in a note.

“The pessimist case for slow growth in the U.S. has been substantially wrong so far, and we believe it will continue to be wrong,” they added.

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