US market flat, China surges but bull market may have “peaked”

Markets were mixed on Friday.

The S&P 500 was flat while the STOXX Europe 600 dipped 0.1 percent.

Earlier in Asia, the Nikkei 225 fell 0.6 percent but the Shanghai Composite surged 2.6 percent.

The rebound in the Chinese stock market came just a day after it hit a four-year low, when it closed 30 percent below its 52-week high.

The bearish trend in China does not bode well for the US stock market. According to a CNBC article, US stocks are more often weaker when the declines in Chinese stocks are large.

“Everyone accepts that earnings growth will slow next year and that interest rates are going to rise,” said Alec Young, managing director of global markets research at FTSE Russell. “I think there’s a chance that the bull market has peaked.”