Financial markets/economy

Markets: first signs of a correction after record highs?

Posted by MoneyController on 29.03.2024

The S&P 500 and the Dow Jones Industrial Average set new records. The bullish cycle in the US stock markets has thus been confirmed for the first quarter of 2024. In Europe, stock markets have also reached record levels or, like the DAX 40, are hovering around them. At this point, it seems legitimate to ask: where will the markets go in the coming months?

Notable stock sales

It is impossible to predict market trends. However, it is possible to observe the behaviour of some market participants. As Alessandro Graziani points out in 'Sole 24 Ore', it is likely that some large shareholders believe that the market has peaked: this could explain some substantial sales of shares in a short period of time (an operation known as 'accelerated book building').

Share sales on the Italian stock market

Graziani mentions some notable sales, such as that of the Italian Ministry of Economy and Finance, which sold 12.5% of its stake in the bank Monte dei Paschi di Siena. Other companies involved in these sales - made by major shareholders and also mentioned by Graziani in the 'Sole 24 Ore' article - are The Italian Sea Group, Moncler, Lottomatica, Nexi, Webuild, Garofalo Health Care and Fondazione Crt.

Sales on the US market

However, Graziani points out that these figures are very small compared to the turnover on US stock exchanges. He cites the case of Amazon: in the first quarter, founder Jeff Bezos and CEO Andy Jossy placed shares on the market that earned them a total of around USD 13 billion.

Stock markets expect first rate cut in 2024

According to the Frankfurter Allgemeine Zeitung (FAZ), the Easter break could precede a further rise in the markets. One specific factor could drive the markets after Easter: the approach of the first interest rate cut by the Federal Reserve and the European Central Bank.

See also

What are financial markets?

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