LIVE MARKETS-A good first day could be a bad sign for the year

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A GOOD FIRST DAY COULD BE A BAD SIGN FOR THE YEAR

Stocks have started the year on a strong note, posting gains in Asia, .MIAPJ0000PUS and Europe .STOXX where they are at record highs, while U.S. futures are higher. EScv1

But, that might not be good news for stocks bulls this year.

Jim Reid, Deutsche Bank's global head of macro research, points out in his morning note that "2023-25 each started with a negative session for the S&P 500, before the index then saw a double-digit annual gain."

"By contrast, 2022 saw an all-time high on the first day, before the index fell into a bear market and its worst year since 2008."

Does this mean we need to worry about a big selloff?

Reid doesn't go that far. He simply notes: "whatever happens today, we really shouldn’t overegg the day one moves."

(Alun John)

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