Stock Market Today: Dow, S&P 500 score fresh records as stocks end with modest gains
History shows Chinese stocks haven’t instilled much confidence among the bulls after recording single-day gains of over 4%, Bespoke analysts said in a Tuesday note.
As shown in the charts above, while median forward returns of the Shanghai Composite over the following week were better than the average for all periods since 2004, performance over the next three, six, and 12 months was much weaker than the long-term average.
“While the positive response by the equity market to the stimulus measures is more than warranted given the stops pulled overnight and could have some follow-through in the short term, we’re not quite convinced that all the necessary stops were pulled to make this the seminal event for a turnaround in the long-languishing Chinese equity market and economy,” Bespoke analysts wrote.