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Stocks continued to move higher last week as risk markets around the globe performed well. Additionally, credit-spread sentiment has reversed tremendously since the beginning of the year. This week, investors will watch for a few key market-moving items to confirm the recent positive momentum.
Business and political leaders meet in Davos, Switzerland, for the World Economic Forum. Given the number of leading figures set to speak, it will be enlightening to hear their thoughts on the performance of the global economy. I expect a wide variety of perspectives on a range of topics from monetary to trade policies. The markets will also continue to be focused on any developments in China and resolving the U.S. government shutdown.
I expect the markets to trade in a range for a period of time as the extreme oversold position has corrected.
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