The dogged Dow is trying to end its rocky week on an upbeat note, as everyone wonders what’s ahead in this year’s second half.
For investors, global stocks are now not looking as great as earlier this year, say Schroders strategists for our call of the day.
“We have downgraded equities to neutral, reflecting our more cautious stance,” they write in a note giving their latest take on a range of assets. “Positive earnings revisions have become less widespread recently, and a number of upcoming political events could lead to heightened risk aversion.”
The graphic below shows their latest views as 2018’s second half looms. Global stocks have been cut to a meh rating, government bonds and credit draw neutral-to-negative scores, and commodities get a positive-to-neutral rating. The Schroders team likes oil, industrial metals and agricultural commodities in particular, but not gold.
While the British company’s strategists have turned more downbeat overall on the world’s stock markets, they think American equities stand out.
“The U.S. continues to be the most resilient economy and the source of many upward earnings revisions,” they write, offering the graphic below (in two parts).
Emerging-markets equities also get a green light, even after a downgrade. They’ve got their problems, but valuations are relatively attractive, the strategists say.
July 4th is on a Wednesday this year, so it’s technically gonna be a 9-day weekend.
— Ivan the K™ (@IvanTheK) June 28, 2018
Key market gauges
Futures for the Dow
, S&P 500
are higher, after the Dow
and Nasdaq Composite
all rallied yesterday, but stayed on track for weekly losses.
With one session left in this year’s first half, the Dow is down 2% for the period, while the S&P and Naz are up about 2% and 9%, respectively.
Some traders have suggested big drops are ahead if the cryptocurrency can’t hold above this “critical” round number.
looks on track for an up day after the sneakers seller’s better-than-expected results late yesterday, and Corona beer parent Constellation Brands
is on the earnings docket before the open.
, Bank of America
and other banks announced plans for dividend hikes and stock buybacks following the Federal Reserve’s latest stress tests. Deutsche Bank
got the cold shoulder, again.
Check out: MarketWatch’s Economic Calendar
In White House news, John Kelly is reportedly expected to leave his chief-of-staff gig this summer, after a year on the job.
Do you know AMLO? Unorthodox candidate Andrés Manuel López Obrado looks set to become Mexico’s new leader in the country’s presidential election on Sunday.
Netflix makes it to the cover of the Economist: pic.twitter.com/XcIIXc0DB9
— LST (@LongShortTrader) June 28, 2018
“People in there were just trying to do a job for the public. Something like this might happen in Afghanistan or Iraq or something like that, but you don’t expect it to happen in a little sleepy office across from the local mall.” — Capital Gazette reporter E.B. “Pat” Furgurson gives his reaction to the shooting at his newspaper in Annapolis, Md., that left five dead.
Yes, we’re putting out a damn paper tomorrow. https://t.co/ScNvIK1A4R
— Capital Gazette (@capgaznews) June 29, 2018
Author Carl Hiaasen, known for his humorous crime fiction, paid tribute to his brother Rob, one of the slain journalists, calling him “one of the most gentle and funny people I’ve ever known,” as well as somebody who believed deeply in “the public’s right to know the news.”
Did you hear about the rapper who snarled LA traffic for hours?
Guardian investigation: Women in U.S. prisons recruited by sex traffickers.
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Source : MTV