"The rally that we've seen, I think, is vulnerable to reversing again," says Peter Oppenheimer, chief global equity strategist at Goldman Sachs, as he expects more downside in earnings estimates.

New York

Donald Trump has signed an order to impose tariffs imports into the U.S. from countries including China, Mexico and Canada.

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Goldman Sachs' chief global equity strategist, Peter Oppenheimer, has expressed concerns about the vulnerability of recent market rallies to reverse. Oppenheimer points out that the current market environment is characterized by uncertainty, largely stemming from tariff announcements which have disrupted an otherwise advancing economy. According to Oppenheimer, this has resulted in further downside risk to equities within a bear market backdrop that he describes as event-driven.

Oppenheimer notes that the level of uncertainty is affecting investment decisions both at the corporate level and among investors, contributing to downward momentum. He suggests that while the overall market is down about 12 percent from its highs, a typical characteristic of a bear market includes substantial rallies. These rallies, he says, are driven by investors reacting to incremental news with the fear of missing out on a trough.

Although recent rallies have been observed, Oppenheimer cautions they may be susceptible to reversal. He points out that equities are still trading at relatively high valuations, with the U.S. market trading at about 20 times earnings—higher than the historical average. While he doesn't see significant upside in valuations, Oppenheimer expects further downside in earnings estimates, which are already declining at a rapid pace. His analysis suggests that the market may be prone to further corrections in the near term as the equity cycle progresses.



Goldman Sachs: Markets vulnerable to further correction

How difficult is it to make investment decisions to be bullish on overall equities in this type of environment. Well done is a very good question. It's a real roller coaster ride. And the point that you make is a very good one. There's still a high degree of uncertainty about where we land in relation to tariffs and therefore the economy. And from that perspective I think there's further downside risk to equities in the context of this bear market. This is a bear market that we characterize as event driven. So it was triggered really by a set of tariff announcements that sort of derailed an economy that was moving ahead relatively well. It's possible of course that these tariffs are reversed or pulled back more and that we'll get a healthier recovery from this downturn. But I think a lot of investment decisions both at the corporate level and from investors themselves are just being held at bay at the moment as people wait to see. And that's going to create still further downward momentum because it's interesting to talk about this being a bear market Peter when we are only down 12 percent from the highs that on its surface you could say this is just a correction. Is there then a mismatch between sentiment and how poorly equity markets are actually doing. Yeah. What sentiment is very poor. And this is true in the corporate sector and amongst investors because the degree of uncertainty is so high. Bear in mind that equities take the U.S. was was at one point down 20 percent or so. That's a normal characteristic of a bear market. We've seen a good rally but we should also recognize that in most bear markets you do get strong rallies as investors iterate every little marginal piece of news in the fear of missing a trough. But the rally that we've seen I think is vulnerable to reversing again. Bearing in mind that equities are not that cheap. The U.S. market is still trading at around 20 times earnings. That's an around the 80th percentile. We don't think there's a lot of downside in valuation but I think we do see more downside in earnings estimates that already decelerating quite rapidly. Our numbers are below consensus. And I think as those earnings numbers continue to come down we're vulnerable still to a further correction in the near term in this in this equity cycle.

Firefighting and rescue missions continued into Thursday for a second day after a massive fire broke out in Hong Kong, gripping a complex of seven high-rise residential buildings. At least 55 people were killed and dozens more were injured in what is the worst fire to hit the territory in decades.

Tai Po District

Death toll rises to 55 as blaze rips through Hong Kong tower complex

A Peruvian court on Wednesday (November 26) sentenced former President Martin Vizcarra to 14 years in prison after finding him guilty of taking bribes years before he took office, adding to a list of former leaders jailed for corruption.

Lima

Peru sentences ex-President Vizcarra to prison for corruption

Two National Guard members were shot dead near the White House in Washington D.C. A suspect was taken to hospital with injuries related to a gunshot.

Washington

Two National Guardsmen in critical condition after Washington shooting

The death toll in a fire that engulfed several high-rise apartment buildings in Hong Kong has risen to at least 36, authorities say, with more than 275 others still unaccounted for. Hong Kong leader John Lee confirmed the updated death toll early on Thursday.

Death toll in Hong Kong residential high-rise fires rises to 36

A suspect is in custody and the scene is secured after a shooting mere blocks from the White House in Washington, D.C., police said Wednesday. DHS Secretary Kristi Noem said two National Guardsmen had been shot.

Suspect in custody after National Guardsmen shot in Washington, D.C.

Brazil's Supreme Court on Tuesday ordered far-right former president Jair Bolsonaro to begin serving a 27-year sentence for plotting a failed coup, after he exhausted all appeals.

Rio de Janeiro

Brazil's Bolsonaro begins 27-year jail term for coup bid

A fire in a Hong Kong residential complex killed 13 people and injured 15 others. The blaze rapidly spread through bamboo scaffolding, leading to the evacuation of 700 residents.

Tsim Sha Tsui

Thirteen dead as blaze engulfs Hong Kong residential complex

Brazil's Supreme Court on Tuesday (November 25) ordered former President Jair Bolsonaro to begin a prison sentence of more than 27 years for plotting a coup in 2022, according to a court document.

Brasília

Brazil's Bolsonaro to start 27-year prison sentence for coup plot

President Trump says only a few "points of disagreement" remain on a possible deal to end the war between Russia and Ukraine. The president says he will meet with the leaders of both countries only when the deal is in its final stages.

Trump optimistic on Russia-Ukraine peace deal despite recent strikes

The FBI has launched an inquiry into six Democratic lawmakers after President Trump accused them of “seditious behavior” for appearing in a video encouraging U.S. service members to refuse unlawful orders.

FBI probes Democrats over video urging troops to refuse illegal orders

President Donald Trump's administration has ramped up pressure on Venezuelan President Nicolás Maduro by designating the Cartel de los Soles as a foreign terrorist organization. But the entity that the U.S. government alleges is led by Maduro is not a cartel per se.

Caracas

U.S. labels Maduro-tied Cartel de los Soles as terror organization

The head of Sudan's Rapid Support Forces (RSF), General Mohamed Hamdan Dagalo, said late on Monday (November 24) that his paramilitaries would immediately enter into a three-month humanitarian truce in its conflict with the country's armed forces.

Khartoum

Sudan's RSF paramilitary says it will enter into ceasefire

A U.S. official tells CBS News that Ukraine has agreed to a peace proposal brokered by the Trump administration, but some details still need to be sorted out. CBS News' Holly Williams reports.

Kyiv

Ukraine Invasion

Ukraine agrees to peace proposal with Russia, U.S. official says

The Gaza Humanitarian Foundation, the U.S.- and Israeli-backed organization to distribute aid in Gaza, said on Monday (November 24) it was ending its operations after months of criticism over the deaths of hundreds of Palestinians trying to reach GHF hubs.

Tel Aviv-Yafo

Divisive U.S.- and Israeli-backed Gaza aid group ends operations

Darfur

Sudan's RSF paramilitary says it will enter into a ceasefire

Chauncey Billups, who was serving as head coach of the Portland Trail Blazers until his suspension, pleaded not guilty on Monday to charges related to alleged rigged high-stakes poker games.

Chauncey Billups pleads not guilty to charges

The Kremlin on Monday (November 24) said that a European counter-proposal to a U.S. 28-point peace plan for Ukraine was not constructive and that it simply did not work for Moscow.

Moscow

Kremlin rejects revised European peace plan to end war in Ukraine

A federal judge has dismissed the criminal cases against former FBI Director James Comey and New York Attorney General Letitia James on the grounds that Lindsey Halligan, the interim U.S. attorney who secured their indictments, was unlawfully appointed to the role.

Cases against James Comey, Letitia James dismissed

At least 90 people have died in a week of torrential rain, flooding and landslides in south-central Vietnam, authorities said. Popular tourist areas have been heavily hit, with parts of Nha Trang submerged and deadly landslides cutting off roads near Da Lat.

Nha Trang

Vietnam flooding kills at least 90

The Trump Administration is ramping up pressure on Venezuela as the Air Force conducted a simulated nighttime attack along the country's coast. Charlie D'Agata has the latest.

Trump ramps up pressure on Venezuela with nighttime Air Force attack

Israel killed Ali Tabtabai, the acting chief of staff of militant group Hezbollah, in an airstrike on a southern suburb of Beirut on Sunday, the Israeli military said.

Beirut

Middle East Conflict

Israel kills Hezbollah military leader in Beirut strike

While Russia and Ukraine continue to exchange daily drone fire, an updated peace framework is being worked out in Geneva between Ukraine, the US and European partners.

Ukraine upholds red lines as Geneva peace talks continue

Álvaro García Ortiz's decision came less than a week after he received a two-year suspension and a fine for disclosing private information about the partner of an opposition politician.

Madrid

Spain's attorney general resigns after conviction over data leak

U.S. President Donald Trump's Department of Government Efficiency has been disbanded with eight months remaining in its mandate, and Office of Personnel Management Director Scott Kupor has told Reuters that the cost-cutting body now "doesn't exist".

DOGE 'doesn't exist' with eight months left on its charter

Al-Burhan rejected a new truce proposal from US envoy as the “worst yet”, accusing the Quad mediators of bias due to the UAE’s involvement.

Al Fashir

Sudan’s army chief rejects quad truce proposal as ‘worst yet’

Three suicide bombers and three security personnel killed in attack on the Federal Constabulary headquarters in Peshawar, media reports say.

Peshawar

Six killed in suicide attack on security complex in Pakistan

The attack which Israel says to have killed chief of staff Haytham Tabtabai in the southern suburbs of Beirut also killed four other people and injured 25.

Israel says to have killed top Hezbollah official in strike on Beirut

UK Prime Minister Keir Starmer suggested that former Prince Andrew should testify before the U.S. Congress as part of its ongoing investigation into Jeffrey Epstein. Starmer did not discuss Andrew’s case directly but said, as a matter of principle, everyone involved should cooperate with the inquiry.

London

Starmer says former Prince Andrew should testify in Epstein probe

About 50 schoolchildren aged 10–18 who were abducted in Niger state, Nigeria, have escaped, authorities confirmed. They fled individually between Friday and Saturday, according to the Christian Association of Nigeria, which runs the school. Officials continue to track those still missing.

Niger

50 abducted Nigerian schoolchildren escape, authorities say

The first G20 summit to be held in Africa has been labelled a "triumph of multilateralism," as leaders from the world's more powerful economies came together in Johannesburg. South African leader Cyril Ramaphosa used his presidency to highlight the priorities of Africa and the global south.

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