market correction

With almost all indices worldwide at record highs and US stock markets doubling in value after the March 2020 low following the Covid-19 crisis, the risk of a correction is increasing, according to European Securities and Markets Authority (ESMA), the European stock market watchdog, in a statement released yesterday. 

Two in three fund managers think we are still in a bear market, the latest Bank of America Fud Manager Survey shows. They expect another market correction later this year, most likely caused by a second wave of Covid-19 infections.

The first US earnings results came in published last week. As always, the major banks were first, showing disappointing results and withdrawing guidance for the second quarter. The consequence: analysts look into a black hole of uncertainty.