Markets mixed, US consumer confidence surges

Markets were mixed on Tuesday.

The S&P 500 fell 0.3 percent but the STOXX Europe 600 rose 0.7 percent and the Nikkei 225 rose 0.2 percent.

Despite the losses in the US, analysts at Evercore ISI wrote in a note to clients that “faster growth, rising earnings growth expectations, still historically low corporate borrowing costs, and pent up consumer demand will fuel further market gains”.

Indeed, a report from the Conference Board on Tuesday showed that its consumer confidence index surged to 109.7 in March, its highest reading in a year, from 90.4 in February.

Still, the COVID-19 situation in the US remains worrisome.

Dr Rochelle Walensky, director of the Centers for Disease Control and Prevention, spoke on Monday of a “recurring feeling...of impending doom”, noting “a steady rise of cases” over the past week or so.