Markets rose on Wednesday.
The S&P 500 rose 0.4 percent, the STOXX Europe 600 rose 0.5 percent and the Nikkei 225 rose 1.1 percent.
Emmanuel Cau, head of European equity strategy at Barclays, said that investors may be buying stocks now because the market had become “very very oversold as of two weeks ago”.
Trade talks between the US and China ended on Wednesday. US Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs Ted McKinney said that he thought negotiations “went just fine”. However, Vishnu Varathan, head of economics and strategy at Mizuho Bank, wrote in a morning note: “It is not over until the fat lady has sung.”
Some analysts noted that there are some similarities between the 2018 pullback and the one that bottomed in early 2016, which eventually proved to be merely a pause before a series of all-time highs.
However, other analysts thinks that the stock market is too damaged for a sustained rally.
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