Markets rise, but “to remain choppy for a bit longer”

Markets rose on Monday.

The S&P 500 jumped 1.6 percent, the STOXX Europe 600 surged 2.2 percent and the Nikkei 225 rose 1.3 percent.

Despite the rally on Monday, analysts remained cautious for the near term.

Mike Wilson, chief US equity strategist for Morgan Stanley, said the recent rough spell for stocks will “bleed into October as visible risk events linger”.

Morgan Stanley’s equity strategist Graham Secker wrote in a note that “we expect markets to remain choppy for a bit longer”.

Over the longer term, however, analysts were somewhat more optimistic.

“Looking at the micro picture suggests this is just a correction in a new bull market and the best opportunities remain in reopening beneficiaries,” said Wilson.