• The S&P 500 rallied a bit to open the week, gaining the 0.5% almost immediately as Americans turned back to work. It looks as if there is plenty of support underneath though, and now that the holidays are out of the way, I think that we will continue to see more buyers after an impressive jobs number on Friday.
The S&P 500 has rallied slightly to kick off the week as Americans are through the holiday sessions. I believe that pullbacks are to be bought, and I think it’s only a matter time before we go challenging the 2800 level above again, which of course had been very resistant. I think short-term pullbacks are buying opportunities, and I think that the buyers will continue to flood to this market and take advantage of value what we do pull back. To me, it’s obvious that this is a bit of a “buy the dips” type of market, because quite frankly just a few weeks ago it looked as if the world was falling apart. If we can break above the 2800 level, that could send this market much higher, perhaps the 2900 level initially, followed by my longer-term target of 3000 which I still have out there, but I have to admit it’s taken a lot more work to get there than I thought it would.
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• Markets in Europe were higher on Tuesday as investors focused on upcoming corporate earnings and put trade and political tensions aside.
The pan-European Euro Stoxx 600 index was higher by 0.1 percent in early deals, with major bourses moving into positive territory.
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• Asian shares reversed early gains on Tuesday as anxieties about the Sino-U.S. trade war recast their long shadow over investor sentiment, while several high-profile resignations from Britain’s government kept sterling on the defensive.
MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.1 percent after earlier rising more than 0.5 percent. The index had gained 1.3 percent on Monday.
• Japan’s Nikkei share average rose to a 1-1/2-week high on Tuesday as deals news added to a solid Wall Street performance, with oil refiners Idemitsu Kosan and Showa Sekiyu jumping after they said they had agreed to merge in April next year.
Shares of the two firms rallied 12.6 percent and 9.7 percent, respectively, after the announcement. They plan to merge via a share swap, and Showa Shell will be delisted on March 29.
The Nikkei ended 0.7 percent higher at 22,196.89, its loftiest closing level since June 29.
• China stocks ended higher on Tuesday, aided by gains in real estate and transport firms.
The blue-chip CSI300 index rose 0.24 percent to 3,467.52, while the Shanghai Composite Index closed up 0.4 percent at 2,827.63.
However, the recent rebound was seen by many as “technical” in nature, as worries over a full-blown trade war between China and the United States persist.
Reference: Reuters, CNBC
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