Tuesday, 17 May 2016

Markets rise but Wall Street banks see painful summer for stocks

Markets were mostly up on Monday.

The S&P 500 rose 1.0 percent, the Shanghai Composite Index rose 0.8 percent and the Nikkei 225 rose 0.3 percent. The STOXX Europe 600 rose less than 0.1 percent.

US crude oil rose 3.3 percent to $47.72 a barrel, its highest settlement since 3 November, while the yield on the US 10-year Treasury note rose to 1.752 percent from 1.705 percent on Friday, its biggest one-day yield gain since 20 April.

The buoyancy in stocks may be short-lived though.

The Wall Street Journal reports that “Bank of America Merrill Lynch, Goldman Sachs and J.P. Morgan are all urging investors to rotate out of equities because they see a painful summer ahead”.

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