Summer Market Lull Or The Start Of A Correction? – Investing.com
- Date: 03-Jun-2021
- Source: Investing.com
- Sector:Financial Markets
- Country:Middle East
Summer Market Lull Or The Start Of A Correction? – Investing.com
Asian markets developed gains on Friday, supported by the Biden administration's plans to push through a $6 trillion budget spending package for 2022. Japan's jumped 2.2%, while World stocks settled near all-time highs from earlier this month, as did major US equity indices.
Biden's stimulus plan lends itself well to the news headlines but is unlikely to be a meaningful driver for markets. First, it is a consolidation and some reshuffling of previously announced plans for infrastructure, education, and support for low-income families spending. Second, funding for these expenditures is again proposed through tax increases and borrowing from the markets.
At the same time, the momentum in equities in Europe and America has been lost. This development must be attributed to the impending summer lull. The summer season and a boringly positive news backdrop provide the indices with a lukewarm upward push, without any exuberant rallies, but without significant setbacks as well.
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