Thursday, 13 December 2018

Markets rise on positive trade news but corporate debt levels “concerning”

Markets rose on Wednesday.

The S&P 500 rose 0.5 percent, the STOXX Europe 600 surged 1.7 percent and the Nikkei 225 soared 2.2 percent.

“Volatility of late can be blamed on tariffs and trade talks,” said Tatyana Bunich, president of Financial 1 Wealth Management Group.

Dave Lutz, head of ETFs at JonesTrading, noted that the market is in “a good mood”, with the Huawei CFO released on bail and strong market action in Asia on encouraging trade news.

However, meanwhile, Lindsey Bell, an investment strategist at CFRA Research, told CNBC that the level of corporate debt is “concerning” while slowing earnings growth could also become a major market headwind for stocks in 2019.

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