Wednesday, 3 May 2017

Markets rise amid robust US earnings and strong eurozone manufacturing

Markets rose on Tuesday.

The S&P 500 rose 0.1 percent, the STOXX Europe 600 rose 0.8 percent and the MSCI Asia Pacific Index rose 0.4 percent.

Robust corporate earnings helped US stocks maintain their upward momentum, with Phil Orlando, chief equity market strategist at Federated investors, declaring that the “earnings recession is over”.

However, Mislav Matejka, an equity strategist at JP Morgan Cazenove, wrote in a note that “the near-term risk-reward might be getting less exciting” as “[s]ome of the positive catalysts we have been looking for, such as a robust earnings season and the easing in political tail risks, have delivered and are now behind us”.

European stocks rose after coming back from holidays after Greece reached an agreement with its creditors on austerity measures to be taken for the next tranche of bailout money.

Markets were also boosted by strong manufacturing data. A report from Markit on Tuesday showed that its eurozone manufacturng PMI rose to 56.7 in April, the highest since 2011.

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