January 25, 2018 / 7:27 AM / 4 months ago

LIVE MARKETS-Is the risk of a stock market correction rising?

    Jan 25 (Reuters) - Welcome to the home for real time coverage of European equity markets
brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. Reach him on
Messenger to share your thoughts on market moves: julien.ponthus.thomsonreuters.com@reuters.net 
  
    
    IS THE RISK OF A STOCK MARKET CORRECTION RISING? (0715 GMT)
    On the theme of if/when we see a market pullback, economists at Oxford Economics say that
short-term risks are broadly balanced between a downward correction and a further 'melt-up'
rally, according to their analysis.
    But a continued 'melt-up' could risk an equity correction of "well over 10%".
    Oxford Economics reckons a stock market correction of 25 percent could cut U.S. growth to
around 1 percent by 2019. 
 
    (Kit Rees)
    *****

    EUROPEAN STOCK FUTURES POINT TO A START IN THE RED (0703 GMT)
    Earlier financial spreadbetters' indications made it hard to call in what direction European
markets would open but futures now seem to point downward.     
 
    (Julien Ponthus) 
    *****
    
    WANTED: "HEALTHY PULLBACK" (0630 GMT) 
    Just spotted an interesting quote in Chuck Mikolajczak's Wall Street report
which highlights the fact that the continuous rise of markets is actually making some investors
so nervous that a slight correction would be greeted with relief. 
    "The trend is higher and it is so universally, and with such conviction believed that any
meaningful pullback is going to be aborted because investors simply don’t want to miss out,"
said Peter Kenny, senior market strategist at Global Markets Advisory Group in New York.
    "So we are not seeing that healthy pullback that most investors would actually welcome."
    (Julien Ponthus) 
    *****           
    
    MORNING CALL: NO DIRECTION TREND YET FOR EUROPEAN SHARES (0621 GMT)   
    Good morning and welcome to Live Markets. No clear direction is emerging yet for European
shares ahead of the ECB's governing council meeting later today, which will be under intense
scrutiny after a rapidly strengthening euro versus a faltering dollar rattled the continent's
bourses during the previous session. 
     Financial spreadbetters expect London's FTSE to open 2 points lower at 7641.6 points,
Frankfurt's DAX to open 16 points higher at 13430.5 point and Paris' CAC to open 1 point higher
at 5496 points.
    (Julien Ponthus)
    *****

    
 (Reporting by Danilo Masoni, Helen Reid, Kit Rees and Julien Ponthus)
  
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