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FINANCIAL NEWS FROM AROUND THE GLOBE

FINANCIAL NEWS FROM AROUND THE GLOBE

The US stock market has been rising since March 9, 2009. There have been ups and downs, of course, and there have been flirtations with a correction, or decline of 20 percent or more. But even with all the turbulence since the start of October, we are still in a bull market — one that has lasted 3,542 days, the longest stretch since World War II.
Monday was another tough day, again raising the question: Is the party over? Don’t trust anyone who says they know the answer. Here’s a roundup of the factors behind the consternation:
Wall Street Journal: “Downbeat forecasts from former market leaders such as Apple Inc. and Facebook Inc. have raised questions over whether the past year’s gains can be justified. Adding to those worries, investors are already expecting a broader slowdown in corporate earnings growth as rising rates and a stronger dollar take a greater toll on profits.”
Financial Times:
“The mood in the markets had already been unsettled by the tense dialogue between Xi Jinping, China’s president, and Mike Pence, the US vice-president, at the Asia-Pacific Economic Co-operation summit over the weekend. Analysts at Scotiabank said the Apec meetings attended by Mr Pence ‘suggested the US is adopting a harsher tone in dealings with China and . . . mean perhaps little likelihood that a trade deal can be reached, which might inject some unease into markets ahead of the G20 meetings at the end of the month.’ ”
New York Times:
“Investors are increasingly skittish about companies’ prospects. Europe and China are facing economic weakness, while margins could be pinched by higher interest rates and rising labor costs.
Shares in industrial companies, viewed as particularly vulnerable to rising trade tensions with China, have dropped more than 10 percent since September. Economically sensitive financial stocks have slid 7.5 percent. Shares of homebuilders, which are vulnerable to rising rates, have fallen more than 30 percent.”
Boston Globe:
“In Boston, where there are few tech giants and hundreds of startups, the tremors on Wall Street have so far not shaken the faith of executives and their investors. But the local tech sector isn’t immune to the turmoil on Wall Street. No boom lasts forever, and when this one ends, Boston could get hurt. Many venture-funded companies rely on continued infusions of investment to keep them afloat while they build profitable businesses. And there’s a chance that if the faucet shuts off, many could fail.”

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