· Market bull Jeremy Siegel warns the Nasdaq rebound will unravel, favors value stocks
The Nasdaq rebound may last shorter than a New York minute.
Wharton School finance professor Jeremy Siegel sees near-term trouble, saying the backdrop is dramatically supporting the reopening trade over Big Tech and growth plays.
“I’ve been extremely bullish here for nine months,” he told CNBC’s “Trading Nation” on Tuesday. “This stock market still has a way to go up.”
But his forecast excludes the tech-heavy Nasdaq, which just returned to positive territory for the year. The index surged 3.6% on Tuesday. Last week, it was in correction territory.
Siegel warns challenges associated with higher interest rates and optimism surrounding economic reopenings will continue to weigh on growth trades.
· Asian stocks bounce off two-month low as bonds, China markets steady
Asian stocks bounced back from a two-month low on Wednesday after bond yields eased following a well-received auction and as Chinese shares found a footing after recent steep falls on policy tightening worries.
MSCI’s ex-Japan Asia-Pacific shares index rose 0.4%, a day after it hit a two-month low. The CSI300 index of mainland China’s A-shares rose 0.7% in early trade.
The rebound came after Chinese shares had fallen to their lowest levels since mid-December the previous day on the prospect of tighter policy and a slowing economic recovery.
Japan’s Nikkei was little changed while e-mini futures for the S&P 500 shed 0.25%, erasing earlier gains.
· Japanese shares end nearly flat as year-end selloff by funds erases tech gains
Japanese shares were little changed on Wednesday, as gains in technology stocks tracking an overnight Wall Street rally were snapped by a fiscal year-end selloff by domestic funds.
The Nikkei index inched up 0.03% to close at 29,036.56, while the broader Topix gained 0.11% to 1,919.74.
Nikkei rallied to a 30-year high last month on expectations of a swift economic rebound and robust corporate earnings. Fund houses are booking profits before the fiscal year ends this month.
· China's blue-chip index ends higher, policy tightening worries cap gains
China’s blue-chip shares closed higher on Wednesday, a day after it hit a near 3-month low, although gains were capped by lingering concerns of policy tightening as the economy recovers.
The blue-chip CSI300 index ended 0.66% higher, led by a 2.63% jump in its healthcare sub-index and a 1.94% gain in the consumer staples sector.
The Shanghai Composite index closed down 0.05% at 3,357.74.
China’s factory gate prices rose at the fastest pace since November 2018 in February as manufacturers raced to fill export orders, raising expectations for robust growth in the world’s second-largest economy in 2021.
· European markets open lower, losing momentum after previous rally
European stocks opened lower Wednesday, losing some of the momentum seen earlier in the week following a rally on Wall Street.
The pan-European Stoxx 600 slipped 0.3% below the flatline in early trade, with basic resources dropping 2% to lead losses as most sectors slid into negative territory. Telecoms bucked the trend to add 0.4%.
Reference: CNBC, Reuters
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