Market Analysis

Citigroup analysts stated on Tuesday that there's room for further growth in US stocks, as indicators signal ongoing interest in riskier assets, and current market positions aren't excessively stretched.

They noted a temporary dip in investor confidence in mid-March but observed a rebound in investment activity over the past week.

Last week, investors poured $16 billion into new long positions on S&P 500 futures, while exchange-traded funds (ETFs) saw net inflows.

Moreover, they emphasized that current market positions aren't unusually extended compared to historical norms, suggesting the potential for sustained upward trends.

"Market positioning remains within historical ranges, indicating that the current uptrend could persist in the weeks ahead."

In Europe, sentiment has improved in recent weeks, with slightly more bullish positioning observed in the Euro Stoxx 50 compared to the US market.

"The positive sentiment continued with over $2 billion in new long positions in the past week, along with ETF inflows," the team noted.

However, in China, investor sentiment appears more mixed, with the Hang Seng index viewed bearishly at -1.1, while the FTSE China A50 index is enjoying a bullish outlook at +1.8. The A50 has been gathering momentum consistently over the past month.

Paraphrasing text from "Investing UK" all rights reserved by the original author.