Market bubble bursting: wall street losses spark global stock sell-off

Market bubble bursting: wall street losses spark global stock sell-off

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But now confidence in the US leader's promises appears to be waning. Michael Hewson, chief market analyst at CMC Markets UK, said: "The question being asked is whether the scales


are starting to fall away from investor’s eyes as to whether President Trump will be able to deliver anything close to what has been priced into markets since his election last November.  


"Even the mistiest eyed optimist appears to be coming to the realisation that even on health care where there is some form of consensus, that reforms are likely to take a lot longer


than realised and as such any other programs like tax and banking reform and infrastructure spending are likely to get pushed further out into the future."   Kathleen Brooks, research


director at City Index Direct warned of three signs that a larger stock sell-off could be coming. She said: "In recent days the market is sending us some signals that could suggest a


deeper pullback is on its way." First, the Dow Jones Transport Index is down more than seven per cent in the last three weeks, which is negative sign for broader US indices, according


to Ms Brooks. Second, US sovereign debt is being snapped up by investors, which suggests they are looking for safe havens from stocks and nervous of a fall in markets. Furthermore, the


so-called 'fear index' the Vix  has moved higher. Ms Brooks said: "If it rises above 13.11 – the high from early February – this would be another bad omen for US stocks, as


stocks tend to have a negative correlation with the Vix."