Markets were mixed on Monday.
The STOXX Europe 600 jumped 1.7 percent but Asian stocks fell, with the Nikkei falling 0.5 percent and the Shanghai Composite tumbling 1.9 percent.
Chinese stocks failed to gain from a report showing that exports rose 9.5 percent from a year ago.
“We expect export growth to stay robust in the rest of the year as the global economy recovers,” economists at Oxford Economics wrote in a note referring to China’s latest trade data.
Meanwhile, Wall Street was closed on Monday for a holiday after declining last week, and some analysts think the decline is not over yet.
“I think this is a good wake-up call and a reminder that there are risks out there,” said Leo Grohowski, chief investment officer at BNY Mellon Wealth Management.
“I don’t think the sell-off is over. Nasdaq is up 83%s since March 23, the S&P is up 63%,” said Julian Emanuel, head of equities and derivatives strategy at BTIG.
However, most analysts think that the sell-off is likely to be temporary.
“The significant reduction in previously extreme long positions in Nasdaq by momentum traders should allow the equity market to recover over the coming weeks, as happened after the June 11th correction,” said JPMorgan analysts.
Still, Jonathan Bell, chief investment officer at Stanhope Capital, said that the US tech sector is in bubble territory.
“You’ve got exuberance on just a very small number of stocks. That’s certainly bubble territory,” said Bell.
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