Friday, 16 November 2018

Markets mixed amid concerns over trade tension and Brexit

Markets were mixed on Thursday.

The S&P 500 jumped 1.1 percent to end a five-day losing streak but the STOXX Europe 600 tumbled 1.1 percent. Earlier in Asia, the Nikkei 225 fell 0.2 percent but the Shanghai Composite jumped 1.4 percent.

Despite the rebound in US stocks, some analysts see continued headwinds for the market.

Lindsay Bell, investment strategist at CFRA, said that concerns over US-China trade tensions “will continue to intensify as we grow closer to January, when tariffs will jump from 10% to 25%”.

Mark Esposito, president of Esposito Securities, said that the UK's exit from the European Union is having second-order effects on the US economy. “Brexit doesn’t help the European economy, and it’s helping to drive up the dollar, which weighs on earnings and means fewer people will come here to buy our goods,” he said.

No comments:

Post a Comment