Markets rise but may be “due a correction”

Markets rose on Tuesday.

The S&P 500 rose 0.7 percent, the STOXX Europe 600 rose 0.8 percent and the Nikkei 225 surged 2.2 percent.

Despite the gains on Tuesday, some analysts remain cautious.

Shane Oliver, head of investment strategy and chief economist at AMP Capital, wrote that stocks “are due a correction or pullback after rallying strongly since their December lows and worries about inverted yields curves and the growth outlook could provide the trigger”.

Jeffrey Saut, chief investment strategist at Raymond James, wrote that “the short-term work suggests a continuation of a stall for the equity markets with no big downside move provided there is not a ‘black swan’ news event”.

Both Oliver and Saut think that longer-term prospects are good though.

Oliver said that "we continue to see this being a reasonably good year for shares" while Saut said that there is “plenty of internal energy for the stock market on a monthly, or intermediate-term basis”.