Markets fall but risk-off sentiment remains “at the margin”

Markets fell on Tuesday.

The S&P 500 fell 0.8 percent, the STOXX Europe 600 fell 0.1 percent and the Nikkei 225 fell 0.6 percent.

Ian Winer, head of the equities division at Wedbush Securities, said: “People are getting a little more nervous on the margin—not just the geopolitical stuff—over whether tax reforms and pro-business policies will get done.”

However, National Australia Bank Director of Economics David de Garis noted that risk off sentiment has not become obvious as moves back to safe haven or risk-off currencies “have been very much at the margin”.

Indeed, Oppenheimer analysts now see the “next leg” of the stock market rally ahead and expects “new highs” for the S&P 500 over the coming weeks.