Tags: rbc | market | forecast | political | obstacles | stocks

RBC Slashes Market Forecast as Political Obstacles for Stocks 'Pile Up'

RBC Slashes Market Forecast as Political Obstacles for Stocks 'Pile Up'
(Ronniechua/Dreamstime)

By    |   Tuesday, 10 April 2018 03:07 PM

RBC Capital Markets slashed its S&P 500 forecast for 2018 as political obstacles for stocks “pile up.”

Some of the obstacles include the potential for greater regulation in tech, a Democratic sweep in the November midterm elections and a trade war with China, CNBC cited RBC as saying.

"The list of political obstacles for stocks has continued to pile up and seems unlikely to improve anytime soon," says Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets, who trimmed her year-end target on the S&P 500 to 2,890 from 3,000. Near midday, the S&P 500 was up 37.97 points, or 1.45 percent, at 2,651.13. 

Calvasina's lower target on the S&P 500 still represents a gain of 8 percent for 2018, CNBC reported. 

Calvasina also downgraded the tech sector from market weight to underweight, noting high stock valuations and "fading leadership on fundamentals and earnings," CNBC reported.

"To be clear, both still appear positive for the sector, but Tech is no longer the leader of the pack on either front, something that was a key underpinning of the bullish narrative on the sector in recent years," Calvasina said.

Tuesday on Wall Street, U.S. stocks were higher as investor concerns about rising U.S.-China trade tension eased after Chinese President Xi Jinping promised to cut import tariffs.

“The markets are saturated and it is a bit of profit taking as the markets get set for the most anticipated financial earnings this Friday,” Andre Bakhos, managing director at New Vines Capital LLC in Bernardsville, told Reuters.

Xi said China will sharply widen market access for foreign investors, a point of contention for U.S. President Donald Trump’s administration.

His comments buoyed global markets, which have been under pressure as China and the United States threatened each other with billions in tariffs and investors feared that protectionist measures would hit global economic growth.

“What you are seeing in the market is an alleviation of trade war fears and people trying to get back in and reposition themselves for what they hope - no trade war,” said Robert Pavlik, chief investment strategist and senior portfolio manager at SlateStone Wealth LLC in New York.

(Newsmax wire services contributed to this report).

© 2019 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
StreetTalk
RBC Capital Markets slashed its S&P 500 forecast for 2018 as political obstacles for stocks “pile up.”
rbc, market, forecast, political, obstacles, stocks
365
2018-07-10
Tuesday, 10 April 2018 03:07 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved