The U.S. session therefore opened on Thursday on the upside, heading for new record highs. This expected increase is indeed due to several major publications that arrived in the morning, including an excellent industrial performance by Morgan Stanley and several solid indicators.Trade on the Dow Jones!
In particular, it is worth noting that just a few minutes before the start of the US session, futures contracts on most major US indexes advanced by nearly 0.3 to 0.4%, which is a sign that the session is about to begin.
The US equity market appears to be driven by a wave of optimism at the start of this new quarterly earnings season. According to analysts, these results should indeed constitute a solid and interesting bullish relay.
Mark Haefele, Chief Investment Officer of UBS's Wealth Management business line, announced on this occasion and this morning : "We see the earnings season as a turning point after a period of weak earnings growth for the companies in our portfolio.we believe that the U.S. economy is likely to continue to drive equity markets higher this year despite what we believe is still modest potential for multiple expansion.»
Most investors are also counting on the fact that the results released by Morgan Stanley this morning will pave the way for more positivism. It should be noted that the latter posted quarterly earnings well above the base forecast, thanks in particular to its bond trading activities.
Thus, the first news that alerted the market to this very likely rise in the US stock markets was the rise in the stock of the investment bank Morgan Stanley, which gained nearly 1.5% in the pre-opening session.
In addition, the fact that the U.S. and China finally signed a trade agreement yesterday also played in favor of U.S. markets and led to a renewed risk appetite among investors.
Traders also have the feeling that the U.S economy is doing particularly well at the moment. Of particular note here is the announcement of an unexpected drop in weekly jobless claims, confirming the health of the US labour market and reinforcing the upward trend.
Retail sales also showed an increase of around 0.3% for December and the Philadelphia Fed index stood at 17 in January compared to only 2.4 in December, marking a clear recovery in the growth of local manufacturing activity.