E Has The Global Market Recovery Run Out Of Steam?

The coronavirus pandemic has ravaged the global financial markets after triggering a flash crash in March. Since then, the world’s leading stock indices have recovered significantly with the S&P 500 Index gaining nearly 40%. Japan’s Nikkei 225 index has also made a significant recovery rallying more than 33% while the UK and EU-based stocks are up about 21% as per the FTSE 100 index and the EURONEXT 100.

Looking at the chart below, it is clear that that recovery may have run out of steam. This happened in early June amid fears of a second wave of the coronavirus pandemic flaring up. This was shortly followed by another pullback. However, unlike the previous collapse which saw markets sink into a recession, the current pullback appears to be only a blip for now. In fact, there have been some decent rebounds since mid-June. Whether this rebound results in a major run is another question.

The current trend in the global market makes it challenging to identify stocks to invest in especially given that reports still point towards a continued slowdown this year and the next. But that does not mean that investors cannot profit from the market. 

Pouncing on short-term opportunities

With the expected volatility in global stocks, opportunities to short the market or pounce on short-term rebounds will be multiple. And the best thing is that with advanced technologies, traders can now pounce on all these opportunities via a single platform. Stock trading via CFDs is now becoming more popular across the globe as online share brokers continue to add blue-chip stocks in their asset portfolio.

US stocks are currently reporting earnings for Q2. This week, it has been mostly the financial and industrial sector reporting but in the coming weeks, the likes of Facebook Inc. (FB) on July 29, Apple Inc. (AAPL) and Alphabet Inc. (GOOG) both July 30, among other technology giants will announce their results.

This sets the market up for some exciting times in the near future. With the anticipated earnings results, the stock prices of these companies could become a little volatile. This creates more opportunities for traders to capitalize on the pre-earnings period. 

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Disclosure: The material appearing on this article is based on data and information from sources I believe to be accurate and reliable. However, the material is not guaranteed as to accuracy nor does ...

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