Saturday 27 October 2018

Markets resume fall, recovery “will take some time”

Markets fell on Friday.

The S&P 500 plunged 1.7 percent, the STOXX Europe 600 fell 0.8 percent and the Nikkei 225 fell 0.4 percent.

Analysts at Singapore's OCBC Bank said in a morning note that “investors are likely to be still licking their wounds after the recent sell-off so any rebound is likely to be muted barring a fresh catalyst”.

A positive catalyst, however, appears elusive at the moment.

“All the macro issues, from higher interest rates to slowing growth in China are giving us a half-glass-empty situation regarding 2019 earnings,” said Alec Young, managing director of global markets research at FTSE Russell.

Still, some analysts remain undaunted.

“The market’s mood swings have been unsettling, but the underlying conditions that triggered the rout are unlikely to shatter the economic or earnings cycles. We think this will all sort out, but it will take some time,” said Kelly Bogdanova, vice president of portfolio advisory group at RBC Wealth Management.

No comments:

Post a Comment