MTS Futures News_PM_20190102

MTS News

MTS Futures News_PM_20190102

2 Jan 2019

•There's a good chance that what ailed the market in 2018 could reverse sometime in 2019, providing strong tailwinds for stocks, some strategists said.

After the worst December since 1931 and the worst year since the financial crisis, stocks enter 2019 tentatively but still susceptible to the volatility that resulted in historic intraday swings in late December. The S&P 500, trading at about 2,495, is down 6.6 percent for the year, and down 9.6 percent in December alone.

In the final quarter of 2018, the market fell on concerns that economic growth and profit growth are slowing down, and Fed rate hikes and trade wars would only accelerate the deceleration. But most Wall Street strategists in a CNBC survey maintain a rosy view for the bull market, and see it extending its run for another year, for an average year-end target of 3,000 — a 20 percent gain.

"Based on fundamentals, I don't think the pullback we had in this market was ever justified. Markets will do what they'll do. I think you have significant upside here. Therefore, we would think that the bottom has been put in this market," said Jonathan Golub, chief U.S. equities strategist at Credit Suisse. One positive is that the forward price to earnings ratio has fallen below 15 percent from 18.4 at the start of 2018. Golub's S&P 500 target is 2,925 for 2019.

But while recent up days have been encouraging, some strategists say the market could stay volatile and swing in both directions as it works to form a bottom around the lows of last week.

Ed Keon, chief investment strategist and fund manager at QMA, is clearly feeling better about the market but says it continues to have big risks, and he expects earnings growth to be flat in 2019, compared to Wall Street expectations of about 7 to 8 percent growth.

• ตลาดหุ้นยุโรปปรับตัวลดลง ท่ามกลางความเชื่อมั่นของเหล่านักลงทุนในเชิงลบ หลังจากที่ตลาดหุ้นผันผวนมาตลอดปลายปี 2018

ทั้งนี้ ดัชนี Stoxx600 ปรับลงกว่า 1% ในช่วงแรก ขณะที่ตลาดภูมิภาคส่วนใหญ่เคลื่อนไหวในแดนลบ 

• Asian shares turned tail on the first trading day of the new year as more disappointing economic data from China darkened the mood and upended U.S. stock futures.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS skidded 1.6 percent as a private sector survey showed China manufacturing activity contracted for the first time in 19 months.

• China stocks started 2019 on a bearish note, closing lower on Wednesday, as lacklustre economic data stoked worries about a global slowdown.

The blue-chip CSI300 index fell 1.4 percent to 2,969.54 points, while the Shanghai Composite Index ended down 1.1 percent at 2,465.29 points.

There is a hint to some extent from the PMI data, that the slide in corporate profits has just begun, Guotai Junan Securities wrote in note.

Largely dovetailing with the official survey, a private survey showed China’s factory activity contracted for the first time in 19 months in December as domestic and export orders continued to weaken.

China’s monetary policy stance has not shifted, but a greater focus will be placed on flexible policymaking to adjust to changes, a central bank official said, with the Chinese economy widely expected to face more headwinds next year.


Reference: Reuters, CNBC 

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