• Loading stock data...
PublicWire | Emerging Market Stock News
  •  Home
  • Technology
  • Medical
  • Energy
  • Cannabis
  • Finance
  • Retail
  • General
  • Podcast
  • Videos
  • Services
  •  Home
  • Technology
  • Medical
  • Energy
  • Cannabis
  • Finance
  • Retail
  • General
  • Podcast
  • Videos
  • Services
No Result
View All Result
PublicWire
No Result
View All Result

Home » Finance » European Central Bank Warns US Stocks Are “Stretched”

European Central Bank Warns US Stocks Are “Stretched”

Al Restar by Al Restar
May 29, 2019
in Finance
2 min read
147
0
European Central Bank Warns US Stocks Are “Stretched”

Photo: Hernán Piñera | Flickr | CC BY 2.0

US stocks are once again in the middle of a spotlight; this time, it’s not about their decline, but because the European Central Bank thinks they are overpriced.

On Wednesday, the central bank said on a report that the prices of US stocks appear “stretched,” and could be risky for the EU market.

“Prices seem detached from their underlying fundamentals,” the ECB said in the biannual report.

They worry that some of the financial assets in the American market is overpriced and may cause shocks down the line, the officials warn.

US market status

Currently, the US stock market is one of the most volatile markets following the continuous and arduous tit-and-tat with China. The trade war has caused investor anxiety pulling the market down. The Dow is at its fifth consecutive decline, the longest decline streak for the last eight years.

Washington’s recent ban on Chinese tech and smartphone giant, Huawei did not help the situation at all. If there’s something it has done, that is to make the market more fragile than it was before. But things are not as bad as one when it comes to the general market. In fact, the Dow is still up 16% from its December low and 6% away from hitting its all-time high.

However, analysts and market watchers argue that the continuous trade war against China may bite the US anytime soon. Goldman Sachs analysts said recently that if the United States moves forward with threatened tariffs on all remaining imports from China, it will push the US stock market down an additional 4%.

The ECB warned that high valuations, along with concerns about the economic cycle, have caused a sell-off of global stocks before.

“While the December turmoil was orderly and without immediate widespread consequences, the episode illustrated that investor sentiment could prove unpredictable,” the bank said.

Al Restar

Al Restar

An idealist straight from business school who works as a content marketer, digital branding consultant, and graphic designer. Outside work, he spends his time taking care of his cacti and painting watercolors.

Related Posts

Federal Reserve to Offer Loans to ‘Eligible’ Nonprofit Organization
Finance

Federal Reserve to Offer Loans to ‘Eligible’ Nonprofit Organization

June 16, 2020
199
Vroom Stocks Off to a Very Good Start in its First Day of Trading
Finance

Vroom Stocks Off to a Very Good Start in its First Day of Trading

June 9, 2020
126
Hertz Stocks Improve After Travel Shows Signs of Revival
Finance

Hertz Stocks Improve After Travel Shows Signs of Revival

June 9, 2020
145
Vroom Increased Price Listing Ahead IPO
Finance

Vroom Increased Price Listing Ahead IPO

June 9, 2020
162
Polls predicted Brazil’s GDP ‘most likely’ to hit an all-time low
Finance

Polls predicted Brazil’s GDP ‘most likely’ to hit an all-time low

May 26, 2020
128
Hertz Filed for Bankruptcy
Finance

Hertz Files for Bankruptcy Protection

May 23, 2020
120
Currently Playing

Subscribe To Our Newsletter

Ad

PublicWire | Emerging Market Stock News 24/7 | Investor Relations US Stock Market

© Copyright 2020 PublicWire.com

Navigate Site

  • About
  • #96576 (no title)
  • Disclaimer
  • Watch LIVE
  • Privacy Policy
  • Terms and Services
  • Contributors

Follow Us

No Result
View All Result
  • LIVE Investor News Channel
  • Cannabis
  • Energy
  • Finance
  • General
  • Medical
  • Podcasts
  • Retail
  • Technology
  • #370 (no title)

© Copyright 2020 PublicWire.com

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Public Wire Logo

Hello please subscribe to our newsletter to get up to date news weekly!

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.