According to Lead Capital Partners, after the turbulent volatility of the last 5 trading sessions, stock markets in Asia and Europe staged a rebound as investors speculated that the selling last week may have been overdone.

Japan’s Topix and Nikkei 225 Average rallied by 8% and 7.2% respectively buoyed by a weaker-than-expected read on Q4 Japanese GDP which renewed hopes of further central bank stimulus. In Europe, Germany’s DAX surged led by financials including the country’s 2nd biggest lender, Commerzbank which jumped 8% at the open after posting its first billion-euro plus profit in 5 years. The United Kingdom’s FTSE 100 added to the 3% bounce it enjoyed at the tail-end of last week with a further 2.5% jump boosted partly by Reckitt and Benckiser’s better-than-expected annual report.

“What we’re seeing in markets is a relief rally. It gives short sellers an opportunity to cover their shorts and take some risk off the table. It most certainly shouldn’t be interpreted as a sign that the issues that have given investors the jitters since January have gone away,” explained Lead Capital Partners’ Asian markets strategist, Solomon Greenhaus.

“The fact is that the root cause of the volatility is still there – investors are losing faith in the central banks’ ability to keep the train on the tracks,” he added.

Lead Capital Partners emphasized its belief that stocks had not bottomed and that investors should expect a resumption of selling pressure during the course of next few trading sessions. The New York-based investment boutique did, however, suggest that any resumption of selling would provide even more opportunity for canny investors to acquire stocks at discounts ahead of inevitable monetary stimulus.

About Lead Capital Partners:
Lead Capital Partners is an independent investment management practice founded on the philosophy that an active, opportunistic and adaptable approach to investing provides our clients with the best chance for the realization of long-term positive returns irrespective of prevailing market environments.
It is our firm belief that the “buy and hold” investment strategy that has traditionally served investors to such great effect over the decades can, now, lead to significant losses in bear markets, or to little or no profit in markets that persist in trading in ranges unless they are actively managed by seasoned professionals such as those at Lead Capital Partners.