The People’s Bank of China pumps 1.2tn yuan into the financial system to protect the economy from the coronavirus Global stocks extended their rally last week despite concerns that the coronavirus will slow global growth. Experts at Julius Baer continue to argue that stocks are susceptible to a short-term correction and consider any weakness as an entry opportunity for long-term investors.
After another fall on Friday, the stock markets have followed the US and Asia’s bull trail. The Ibex 35 recovered part of last week’s losses at the opening. In general, analysts are agreed that this fall in the markets is a healthy correction and not the start of another bear market.
What are the reasons for the apparent abrupt change in mood on the stock markets? Does this unexpected sell-off mean the end of the bull market? What seems clear is that the environment has changed, volatility is back, and 2018 is looking more complex for investors given central banks that are reducing stimulus.