Tags: Larry Fink | Stocks | Oil | CNBC

Larry Fink: I'm More Bullish on Stocks, But Oil Will Extend Plunge

Image: Larry Fink: I'm More Bullish on Stocks, But Oil Will Extend Plunge
Larry Fink (AP)

By    |   Friday, 22 Jan 2016 10:15 AM


BlackRock Chairman and CEO Larry Fink said Friday he's more bullish on stocks than a week ago, but he fears crude will continue to tumble.

"I think China has been acting a little more sensibly. They've been more rational. They've been more consistent. I think that's really stabilized the [stock] market," Fink told CNBC.

"In the first few weeks [of 2016], we saw ... some very large financial institutions selling. This week we saw buyers, starting on Wednesday," he added.

Exactly one week ago, Fink told CNBC that U.S. stocks could fall another 10 percent before all the market carnage was done.

The U.S. stock market, tracking tumbling oil prices, has failed to sustain any rallies this year as risk-averse investors search for signs of stability. The S&P 500 is down 8.6 percent in 2016, having closed higher on only six of the 13 sessions, Reuters reported.

"I don't think anybody really expected to see this kind of rout in global equities at the start of the year," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida. "At some point, you do shake all the bad blood out."

Oil soared nearly 8 percent early Friday as a cold snap boosted demand for heating oil and investors took advantage of the lowest prices since 2003 to close out some of their more profitable bets on price declines.

Short covering, the practice of buying back an asset sold previously at a higher price, has been enough of a catalyst to lift oil prices by 12 percent in just two days.

But it has stopped the oil price heading toward a near-17 percent drop in January, the largest slide in the first month of the year in at least a quarter of a century.

(Newsmax wire services contributed to this report).

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BlackRock Chairman and CEO Larry Fink said Friday he's more bullish on stocks than a week ago, but he fears crude will continue to tumble.
Larry Fink, Stocks, Oil, CNBC
301
2016-15-22
Friday, 22 Jan 2016 10:15 AM
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