Stock market rally of hope pauses as virus worries mount

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Stock market rally of hope pauses as virus worries mount GlobeInvestor

This translation has been automatically generated and has not been verified for accuracy.The reality that the coronavirus crisis is far from over is threatening a blistering equity market rally that had taken some world indexes to fresh highs.

Rising cases “can quite easily reclaim the news headlines especially if there is a second round of lockdowns in certain U.S. states,” said Chris Bailey, European strategist at Raymond James. Fund managers had turned increasingly bullish, driven by a confidence that the Fed would do whatever it takes, as well as a fear of missing out on the rally.High-profile hedge fund managers Paul Tudor Jones and Stan Druckenmiller said recently they were becoming more bullish on the stock market, reversing their previous reluctance to buy into the rally. Jones’ speech, reported by Bloomberg, was at the Economic Club of New York, and Druckenmiller spoke to CNBC.

“I guess people were assuming and acting like COVID-19 is something of the past, but it is actually still quite present,” said Stephane Ekolo, an equity strategist at TFS Derivatives in London.

 

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