S&P 500 at record highs: Maximize your exposure
The S&P 500 has reached record highs, boosted by solid results from the U.S. financial sector. Companies such as JPMorgan and Wells Fargo posted gains of 4% to 5%, strengthening the market and positioning U.S. banking at one of its highest points in history. As the earnings season progresses, investors are looking to maximize their portfolio returns in an environment of growth in the US market, despite global uncertainties.
United States: Financials lead momentum
In the United States, third-quarter earnings are off to a strong start, with the banking sector in full growth mode and the S&P 500 at record levels. This strength contrasts with the challenges facing other regions, with earnings growth for this quarter expected to be 5.1%. The focus is now on the expectations being managed by large companies, with the developing conflict in the Middle East and the US presidential election as potential risk factors.
Europe: Fiscal challenges and modest growth
Meanwhile, European markets continue to stagnate. The Ibex 35, CAC 40 and DAX reflect mixed performance, with investors awaiting macroeconomic data. Although 4.6% growth in third-quarter earnings is expected, Europe is still grappling with structural problems, especially in Germany and France, which call into question the long-term viability of the euro project.
Asia and the Middle East: Uncertainties and stimuli
In Asia, the focus is on stimulus policies in China, where the government has been trying to revitalize its economy. However, the lack of clarity about the real extent of these efforts continues to raise doubts among investors. In the Middle East, evolving conflicts also introduce an element of uncertainty that could affect global markets in the near future.
On the technical side
S&P500 (Ticker AT:USA500) has been advancing since last week in an almost unstoppable bullish move that has seen it reach new highs. If we look at the most frequently traded area, the index has been hovering above it since September 19, and moving through the upper zone of the long-term channel. It would not be difficult to see it touching 6000 points in the coming weeks. On the other hand, we have the control point (POC) at 5,473 points and the overbought RSI at 67.72% which indicates that there is still room for an extension to that price. If we look at the bollinger bands we can see how on Friday the band started to widen which could reinforce this thought of a continuation of the bullish move.
In summary, while the S&P 500 makes record highs, Europe faces growth challenges, and Asia and the Middle East add elements of uncertainty to a complex global financial landscape.
Ion Jauregui - ActivTrades Analyst
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The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
United States: Financials lead momentum
In the United States, third-quarter earnings are off to a strong start, with the banking sector in full growth mode and the S&P 500 at record levels. This strength contrasts with the challenges facing other regions, with earnings growth for this quarter expected to be 5.1%. The focus is now on the expectations being managed by large companies, with the developing conflict in the Middle East and the US presidential election as potential risk factors.
Europe: Fiscal challenges and modest growth
Meanwhile, European markets continue to stagnate. The Ibex 35, CAC 40 and DAX reflect mixed performance, with investors awaiting macroeconomic data. Although 4.6% growth in third-quarter earnings is expected, Europe is still grappling with structural problems, especially in Germany and France, which call into question the long-term viability of the euro project.
Asia and the Middle East: Uncertainties and stimuli
In Asia, the focus is on stimulus policies in China, where the government has been trying to revitalize its economy. However, the lack of clarity about the real extent of these efforts continues to raise doubts among investors. In the Middle East, evolving conflicts also introduce an element of uncertainty that could affect global markets in the near future.
On the technical side
S&P500 (Ticker AT:USA500) has been advancing since last week in an almost unstoppable bullish move that has seen it reach new highs. If we look at the most frequently traded area, the index has been hovering above it since September 19, and moving through the upper zone of the long-term channel. It would not be difficult to see it touching 6000 points in the coming weeks. On the other hand, we have the control point (POC) at 5,473 points and the overbought RSI at 67.72% which indicates that there is still room for an extension to that price. If we look at the bollinger bands we can see how on Friday the band started to widen which could reinforce this thought of a continuation of the bullish move.
In summary, while the S&P 500 makes record highs, Europe faces growth challenges, and Asia and the Middle East add elements of uncertainty to a complex global financial landscape.
Ion Jauregui - ActivTrades Analyst
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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