Markets rebound but bull market may be entering late cycle

Markets mostly rose on Tuesday.

The Nikkei 225 fell 0.5 percent following the sell-off in the US on Monday but the S&P 500 rose 0.2 percent and the STOXX Europe 600 rose 0.5 percent.

The gains in the US were led by energy stocks as oil rose amid tensions between Iran and Saudi Arabia and concerns about Venezuelan crude production.

While stocks showed resilience on Tuesday after Monday's falls, fund managers appear to see the market as now being in the “late cycle” period.

“Cracks in the bull case are starting to emerge, with fund managers citing concerns over trade, stagflation and leverage,” said Michael Hartnett, chief investment strategist at Bank of America Merrill Lynch, following the release of the firm’s monthly global fund managers survey on Tuesday.