Deutsche Bank make note of the shunt lower for US stocks on Monday, saying markets remain sensitive to ‘downside news’.
- add that selloffs from time to time are normal
- mention that recently bearish factors are beginning to look more positive
DB point to 4 factors that could hit stocks ahead though:
- The delayed impact of previous interest rate hikes hit the economy and financial markets.
- Rising inflation and elevated long-term borrowing costs finally weigh on risk assets.
- The Trump administration enforces stricter tariffs, leading to higher inflation and slower economic growth.
- Economic indicators start to show weaker-than-expected results.
This article was written by Eamonn Sheridan at www.forexlive.com.
