Markets fall as trade tension “likely to linger”

Markets fell on Thursday.

The S&P 500 fell 1.2 percent, the STOXX Europe 600 fell 1.4 percent and the Nikkei 225 fell 0.6 percent.

“Markets are pricing in the harsh reality that trade tension is more likely to linger than quickly be resolved as had been the consensus expectation anchoring sentiment until late April,” said Alec Young, managing director of global markets research at FTSE Russell.

However, Brian Belski, chief investment strategist at BMO Capital Markets, thinks that the market has overreacted to the US-China trade dispute.

Belski said in a recorded presentation to clients on Wednesday that even as stock prices have fallen, revenue and earnings estimates “have not changed at all” and advised clients to “stay invested”.