Zero Hedge: U.S. stock-index futures rebounded from Monday’s rout and European stocks were modestly in the green as investors weighing corporate earnings against the uncertain outlook for global growth, or as Bloombnerg put it, “as buy the dip outweighs fears.”
But in a continuation of yesterday’s moves, treasury yields edged lower sliding to 1.16% while the dollar hit a fresh three month high while bitcoin tumbled below the key support level of $30,000. At 730 a.m. ET, Dow e-minis were up 200 points, or 0.6%, S&P 500 e-minis were up 23.00 points, or 0.54%, and Nasdaq 100 e-minis were up 70 points, or 0.48%.
Analyst views on the recent actions were mixed, ranging from the skeptical…
“The reality is that this price action has become somewhat self-fulfilling as the myopic investor sentiment and positioning are forced to re-assess,” said James Athey, investment director at Aberdeen Standard Investments. “I fear the equity selling isn’t over yet, and if I am right, Europe will be the worst place to be given the index is value dominated – and thus very cyclical.”
… to the optimistic:
“Given that there is little doubt that central banks will do all they can the prevent a significant tightening of financial conditions, meaning there is still a lot of liquidity ready to buy the dip, we think that market valuations are starting to be appealing from a medium-term perspective,” Xavier Chapard, a strategist at Credit Agricole CIB, wrote in a client note. Still, “we are not sure that markets have already fully integrated the risks caused by the new epidemic developments,” he added. Read More