Wednesday, 12 August 2020

Markets mixed as S&P 500 ends winning streak

Markets were mixed on Tuesday.

The STOXX Europe 600 rose 1.7 percent but the S&P 500 gave up early gains to finish 0.8 percent lower.

Ealier in Asia, the Nikkei 225 rose 1.9 percent but the Shanghai Composite fell 1.2 percent.

The decline in the S&P 500 ended a seven-day winning steak that, according to Bruce Bittles, chief investment strategist at Baird, left the market technically “overbought”.

Still, some analysts remain optimistic.

Mark Haefele, chief investment officer for global wealth management at UBS, sees a rebound in economic activity to pre-pandemic levels by 2022 and the S&P 500 reaching 3,500 by the end of June 2021.

In contrast, Michelle Connell, founder and president of Portia Capital Management, wrote in a MarketWatch article that “it will take years to get the U.S. back to the economic levels of January 2020”.

“Be ready for pullbacks in the stock market and dislocations in private markets,” she suggested.

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