Tuesday, 22 August 2017

US stock market rises but “looks wobbly”

Markets were mixed on Monday.

The S&P 500 rose 0.1 percent but the STOXX Europe 600 fell 0.4 percent, as did the Nikkei 225.

While the US stock market was positive on Monday, analysts were not particularly upbeat about its prospects.

“With earnings season coming to an end, there is not much to be bullish about right now,” said Richard Perry, a Hantec Markets analyst. He added that geopolitical risk is “still elevated on the Korean Peninsula” while “the political risk of Trump’s presidency remains a driving factor”.

Sam Stovall, chief investment strategist at CFRA, said in a note that “the market’s current technical action points to the possibility of a decline of deeper proportions”.

JPMorgan's Jason Hunter said the S&P 500 could see a sell-off of as much as 8 percent as soon as next month while Paul LaRosa, Maxim Group chief market technician, said that the market “looks pretty wobbly”.

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