Thursday, 16 August 2018

Markets fall on trade and Turkey, could be “buying opportunity”

Markets fell on Wednesday.

The S&P 500 fell 0.8 percent, the STOXX Europe 600 tumbled 1.4 percent and the Nikkei 225 fell 0.7 percent.

Oil fell sharply. West Texas Intermediate crude plunged 3 percent and Brent fell 2.4 percent.

“Really, everything today has been playing on the idea of the trade tensions and Turkey. Obviously crude is down today because U.S. stockpiles rose over the last week to their highest level since March 2017,” said Kevin Nicholson, chief market strategist at RiverFront Investment Group.

Also weighing on stocks was weakness in Tencent Holding after it reported disappointing revenue and profit for its second quarter.

Christopher Harvey, head of equity strategy at Wells Fargo Securities, told CNBC that there could be “a lot more wild swings in the marketplace” but that any sell-off would likely be limited to “2 to 3 percent”.

Indeed, Byron Wien, vice chairman of Blackstone Private Wealth Solutions, told CNBC that the current market tumble is “going to represent a buying opportunity”.

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