U.S. stocks slipped from all top levels on Tuesday, while market rotation in value stocks led to a new European index record.
The S&P 500 fell 0.1 percent at the opening of the bell in New York, slipping from a high hit the day before for the blue-ship index. The technically heavy Nasdaq Composite is also dipped with the same margin.
“Clearly, we’ve seen a great set of values,” said Robert Alster, chief investment officer at Close Brothers Asset Management. But despite the “apartment” open on Wall Street, “the underlying trend is for the U.S. to move more,” he added.
S&P 500 reached another maximum on Monday, after a report showed activity in the huge U.S. service sector was expanding at the fastest rate recorded last month – an indication that the world’s largest economy is recovering rapidly from the Covid-19 crisis.
“We think investors shouldn’t be afraid to enter the market at all times,” said Mark Haefele, chief investment officer for global wealth management at UBS, referring to U.S. stocks. “We recommend that you continue with the position for reflation trade as the economic recovery accelerates. ”
The Stoxx Europe 600 index across the region earned 1% in early trade, exceeding the previous record set in February 2020, before the coronavirus crisis has launched a tough slip in global markets. The rapper later cut profits, leaving growth of 0.7 percent.
Shares across Europe rose on Tuesday, Britain’s FTSE 100 rose 1.3 percent, Germany’s Xetra Dax rose 0.9 percent and France’s CAC 40 rose 0.5 percent.
It took European stock markets more time to recover from rivals on Wall Street, as the region has a higher share of cyclical companies whose outlook is closely linked to the economic outlook. In contrast, the United States is home to the world’s largest growing companies, especially in technology, who managed to sustain rapid sales growth during the pandemic.
The Stoxx 600 gained 9 percent this year after falling nearly 40 percent last spring and ending 2020 by 4 percent. American reference value The S&P 500 has risen a similar margin in 2021, but reached more than 16 percent last year.
The biggest winners in Europe this year were sectors such as carmakers, travel and leisure companies and banks – all of which have risen by at least 20 per cent since the end of 2020.
In the latest sign of how global economies are recovering from the pandemic, the Prime Minister of Great Britain Announced by Boris Johnson on Monday that England will move to step two of its “roadmaps” to lift the lock on April 12, when it will be possible to reopen spaces including open pubs, unimportant shops, hairdressers and indoor gyms.
The outlook was bleak in parts of continental Europe, where several countries reintroduced social restrictions as a result wave of infection and slower vaccine presentation.
Still, economists expect the eurozone economy to grow 4.2 percent this year, after falling 6.6 percent in 2020. The UK is projected to expand by slightly faster rate of 4.7 percent after a 9.8 percent drop last year, according to economists polled by Bloomberg.