A markets’ correction may be in the beginning stages. Both US and European markets followed a same bearish trend for one week with, for instance, the German DAX30 topping on March 16, 2015 at 12,220 points. Also, the NASDAQ100 fell from 4479 to 4285 in just 6 intraday sessions. After having skyrocketed for 2 months following the ECB announcement of a massive QE worth 1140 billion euros, a correction of continental Europe’s stock markets would rather be sane, this way avoiding unrealistic overbuying.
What’s been more worrisome has been the sudden weakening of US stock markets although they had widely underperformed their European counterparts so far. The DJIA has turned negative YTD, decreasing by 0.59%. The same happened for the SP500 currently recording a flat progression YTD. As a previous Cyceon’s article underlined, there are many factors which may potentially threaten the 6-year global bullish trend, at least temporarily. The deterioration of the security situation in Yemen, in addition to other complications in the Middle East, should justify some more caution.
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