Markets Watch

Market outlook for year appears positive, but expect volatility

Potential for greater political stability in US augurs well for markets, but risks remain

Volatility has been the main discernible state of trading so far, and could remain a feature of financial markets for much of this year.ST PHOTO: KELVIN CHNG

Chaos in Washington, another lockdown in London, resurgence of Covid-19 in Europe and elsewhere, a new administration in the United States rolling in and a patchy roll-out of vaccines around the world. Never in recent history have so many geopolitical events weighed so heavily on financial markets at the start of a new year.

No surprises that volatility has been the main discernible state of trading so far, and could remain a feature of financial markets for much of this year. Wall Street indices have reached new record highs, though in stilted fashion.

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