Markets rise but negative forces “remain very much intact”

Markets mostly rose on Wednesday.

The S&P 500 jumped 2.3 percent, the STOXX Europe 600 rose 1.8 percent and the Shanghai Composite rose 0.6 percent.

Oil rebounded. Brent crude rose 5.4 percent and West Texas Intermediate surged 19.1 percent.

“By no means does this suggest that a price bottom has been placed since the supply/demand forces that drove negative crude pricing this week remain very much intact,” said Jim Ritterbusch, president of Ritterbusch and Associates.

That could mean further pressure on stocks as well.

“The oil reality check has triggered a reassessment across risk assets,” wrote Rodrigo Catril, senior foreign exchange strategist at National Australia Bank, in a note.

Indeed, Citi’s global equity strategy team says the bear market in stocks is not done.

“All bear markets include false rallies, often associated with supportive monetary policy. But markets only find a sustainable base when there are signs that cheap money is feeding through into the real economy, rather than temporarily supporting asset prices,” said the team led by Robert Buckland.