Friday, 21 October 2016

Markets fall, may already be in bear market

Markets were mostly down on Thursday.

Stocks fell. The MSCI All-Country World Index fell 0.1 percent, dragged down by a 0.1 percent decline in the S&P 500.

The euro fell 0.4 percent against the US dollar after President Mario Draghi said the European Central Bank has not discussed extending or tapering its bond-buying programme.

Germany's 10-year bund yield fell three basis points to 0.003 percent while the US 10-year Treasury yield rose one basis point to 1.75 percent.

Oil fell. West Texas Intermediate crude declined 2.3 percent.

As the rally in stocks halted, technical analyst Rich Ross of Evercore ISI told CNBC that “we may actually have entered the early stages of a bear market”.

In contrast, Dennis Davitt of Harvest Volatility Management said that “if earnings continue to be good, we're going to see the macro market accelerate to the upside”.

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