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Bank of America Analyst: Market 'Right in Eye of the Storm'

(Alan Crosthwaite/Dreamstime)

By    |   Monday, 02 April 2018 08:37 AM

Paul Ciana, global chief FICC technical strategist at Bank of America Merrill Lynch, says the market's "headed right in the eye of the storm."

Ciana warned that the bond market and gold trading could yield warnings for investors.

"Our thesis here suggests that U.S. financial conditions continue to deteriorate," he recently told CNBC's "Futures Now."

"Enjoy the little bit of calm in the middle of the storm, and get ready to hunker down as Q2 is probably going to be a bit more similar to Q1," he added.

To be sure, U.S. stock index futures fell on the first trading day of the new quarter as China’s decision to raise import tariffs on U.S. products rekindled global trade war fears and technology stocks showed little signs of recovery, Reuters reported.

China, late on Sunday, said it would increase tariffs by up to 25 percent on 128 U.S. products, from frozen pork and wine to certain fruits and nuts, escalating a spat between the world’s biggest economies. The move came in response to U.S. duties on imports of aluminum and steel.

U.S. President Donald Trump is separately preparing to impose tariffs of more than $50 billion targeting “largely high-technology” Chinese products.

Amazon fell 1.5 percent after Trump launched his second attack over the weekend, accusing the world’s biggest online retailer of getting unfairly cheap rates from the U.S. Postal Service and not paying enough tax.

Facebook was down marginally as the data scandal last month continued to weigh. On Monday, brokerage Pivotal Research slashed its price target to $138 from $152.

After stellar gains in 2017 and early this year, the S&P technology index posted its worst performance in March in nearly two years.

Hit by concerns about a possible trade war, rising interest rates and valuations in the technology sector, the S&P 500 and the Dow Jones Industrial Average posted their worst declines in more than two years in the quarter ended March.

Nervous stock investors are hoping an unusually U.S. strong earnings season can restore some of the optimism that characterized equity markets last year.

(Newsmax wire services contributed to this report).

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Paul Ciana, global chief FICC technical strategist at Bank of America Merrill Lynch, says the market's "headed right in the eye of the storm."
bank, america, analyst, market, storm
Monday, 02 April 2018 08:37 AM
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