Markets mixed as rally shows “evidence of fatigue”

Markets were mixed on Friday.

The S&P 500 rose less than 0.1 percent but the STOXX Europe 600 fell 0.4 percent and the Nikkei 225 plunged 2.0 percent.

Investors were disappointed after US President Donald Trump confirmed reports that he had no plans to meet China’s President Xi Jinping before a 1 March trade-deal deadline.

“Trump’s stance is now rattling investor nerves just weeks before the deadline,” said Jasper Lawler, head of research at London Capital Group, in a note.

Jeff deGraaf, chairman of Renaissance Macro Research, wrote in a note that the market rally “was starting to show evidence of fatigue” and “suggests a pause for equity performance”.

In contrast, Mott Capital’s Michael Kramer said trading action of the past two days has demonstrated the stock market’s resilience.

“If the market opens and test these level again today and then holds, I think we are off to the races and on pace for 2,800,” Kramer wrote.