Tuesday, 21 August 2018

Markets rise, “path of least resistance now is higher”

Markets were mostly higher on Monday.

The S&P 500 rose 0.2 percent, the STOXX Europe 600 rose 0.6 percent and the Shanghai Composite jumped 1.1 percent. The Nikkei 225 fell 0.3 percent.

Paul Nolte, portfolio manager at Kingsview Asset Management LLC, said that with reports of China and the US resuming trade talks and the situation in Turkey looking better, the “path of least resistance now is higher”.

However, Kristina Hooper, chief global market strategist at Invesco, said that she thinks that the US-China trade talks “will fail“ and suggested that investors “be prepared for some downside volatility“.

Nevertheless, Stephen Suttmeier, a technical research analyst at Bank of America Merrill Lynch, said that the strength in the market’s breadth suggests that this is “not a market top”.

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