Markets: Nervous start of the global risk sentiment – Danske Bank

Global risk sentiment got off to a nervous start this week as investors evaluate whether the recent sell-off marks the beginning of a bear market or just a temporary correction, explains the research team at Danske Bank.

Key Quotes

“Yesterday, the big US equity indices ended the day in the red amid a late session selling with most notably the S&P500 staying below the psychologically important 200-day moving average.”

“While it is still too early to call this a turning point - indeed we still pencil in choppy trading near term - our view remains that this is not the beginning of a persistent bear market, as among other things, underlying growth remains too strong.”