LIVE MARKETS-AAII bears tighten their grip 

By Reuters News

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BEARS TIGHTEN THEIR GRIP

Individual investors remained cautious in the latest American Association of Individual Investors (AAII) Sentiment Survey, with the outlook deteriorating from a week ago as bullish sentiment fell and bearish sentiment rose.

Bullish sentiment, or expectations that stock prices will rise over the next six months, fell 3.3 percentage points to 30.8% and remained below its long-term average of 37.5% for the third time in four weeks.

Neutral sentiment added 0.3 percentage points to 17.8%, but remained unusually low and well below its historical average of 31.0% for a 36th consecutive week.

Bearish sentiment gained 3.0 percentage points to 51.4% and is unusually high. It has exceeded its long-term average of 31.5% for the 40th consecutive week, underscoring the cautious tone among individual investors. Historically, elevated pessimism has often been viewed through a contrarian lens.

The bull-bear spread, a measure of overall sentiment, widened 6.3 percentage points to negative 20.6% from negative 14.3% last week. The spread reached its most negative reading since mid-September and is unusually low. It has remained below its historical average of 6.5% for 17 weeks in a row.

Despite the gloomy sentiment backdrop, nearly three-quarters of respondents to this week's special question said they do not currently plan to make any significant changes to their portfolios in response to the midterm elections.

(Terence Gabriel)

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EARLIER ON LIVE MARKETS:

CONSUMER SENTIMENT HAS IMPROVED BUT IS STILL WEAK: LSEG CLICK HERE

ICY HOT: PPI COOLS FROM SCORCHING TO SWELTERING CLICK HERE

WALL STREET TURNS LOWER WITH PRESSURE FROM TECH CLICK HERE

RECORD SKID LEAVES COPPER MINERS AT A CROSSROADS CLICK HERE

FRANCE’S LONG ROAD AHEAD CLICK HERE

HOW A SLOWDOWN IN US AI CAPEX MIGHT IMPACT CHINA'S ECONOMY CLICK HERE

STOXX SET FOR BIGGEST WEEKLY GAIN IN OVER FOUR MONTHS CLICK HERE

EUROPE BEFORE THE BELL: CONSOLIDATION AFTER A STRONG WEEK CLICK HERE

MORNING BID: SCANDAL TOPPLES THE AI STAR CLICK HERE


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