Thursday, 15 September 2016

Markets fall, stocks at risk of correction

Markets mostly fell on Wednesday.

The S&P 500 and the STOXX Europe 600 fell 0.1 percent while the Shanghai Composite fell 0.7 percent.

West Texas Intermediate crude fell 2.9 percent despite a report on Wednesday showing a surprise drop in US inventories.

However, government bonds mostly rose, with 10-year yields falling three basis points in the US and five basis points in Germany.

Japan's 30-year yield rose six basis points though amid speculation that the Bank of Japan will concentrate its bond-buying on short-term securities.

While the fall in stock markets on Wednesday were mild, some see more declines ahead.

UBS technical analysts Michael Riesner and Marc Müller wrote on Tuesday that there is a risk of an 8 to 10 percent correction into late October/early November.

Barbara Kollmeyer at MarketWatch wrote that “we’re working toward a pullback for the S&P 500”.

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