Tuesday 19 November 2019

Markets mixed amid few signs of US-China trade deal or economic rebound

Markets were mixed on Monday.

The S&P 500 rose less than 0.1 percent, the Nikkei 225 rose 0.5 percent and the STOXX Europe 600 was flat.

Renewed doubts over a trade deal between the US and China kept market gains down.

“We had been up in the premarket overnight, and the market turning lower goes to show that investors should take trade optimism with a grain of salt,” said Lindsey Bell, chief investment strategist with Ally Invest.

Meanwhile, a report from the National Association of Home Builders on Monday showed that its housing market index fell 1 point to 70 after hitting its highest level of the year last month.

However, some analysts are concerned that with few signs of an economic rebound, the market may have gotten ahead of itself.

“We quickly went from the consensus thinking we were on the cusp of recession and investors being very, very cautious, buying up the quintessential safe havens, to a much more risk-on, bullish economic view,” said Douglas Cohen, portfolio manager at Athena Capital Advisors, in an interview. “In the short term, that’s gone a bit too far and sets us up for at least a pause, and my guess is in 2020 sentiment will start to become more fragile and volatile.”

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