Friday, 23 December 2016

Markets fall, but stocks expected to resume rally

Markets fell on Thursday.

The S&P 500 and the STOXX Europe 600 fell 0.2 percent while the Nikkei 225 fell 0.1 percent.

While the US stock market fell for a second consecutive day on Thursday, some analysts remain bullish.

Jack Bouroudjian, CEO of Index Futures Group LLC, thinks that “the rally we have experienced over the last few weeks might be the 'tip of the iceberg' when it comes to the move we will see in the coming years”.

Kate Warne, investment strategist at Edward Jones, said: “We expect stocks to grind higher, but expect pullbacks if things don’t materialize as fast as people are hoping.”

Still, Ron Insana at CNBC thinks that there are risks for the stock market, especially the risk that the economy accelerates and inflation moves above the Federal Reserve's 2 percent target, which could see the central bank “move rates up farther and faster than currently anticipated by the stock market”.

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