Friday, 17 June 2016

Japanese stocks plunge but US stocks rise after long losing streak

Japanese stocks plunged on Thursday.

The Nikkei 225 fell 3.1 percent after the Bank of Japan left monetary policy unchanged at its meeting.

Most other Asian markets also fell. The Shanghai Composite fell 0.5 percent.

Elsewhere, the STOXX Europe 600 fell 0.7 percent but the S&P 500 rose 0.3 percent to snap a five-day losing streak.

The S&P 500's bounce on Thursday would not have come as a surprise to some.

According to Bespoke Investment Group, the index's longest streak of losses in 10 months may be signalling a turnaround for US stocks.

The most recent survey by the American Association of Individual Investors (AAII) showed that bearish sentiment surged this past week to 38 percent from 28 percent the week before.

"We view AAII as a contrarian indicator," said George Pearkes, a strategist at the firm. "When bearishness is high or bullishness low, it typically means that the crowd has moved out of the market."

No comments:

Post a comment