Indices Edge Higher Again on Tuesday as Bull Market Charges Forward

by | 9 Jan, 2018

Samsung Predicts Major Gains

“Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria” – Sir John Templeton

January has proven to be an excellent month so far for stocks the world over and today the bull run continued. All key European indices rose as the markets opened, with the FTSE MIB in Italy outperforming its rivals thanks to a rally in bank shares.

In British equities we had some refreshingly good news for the retail sector, as shares in UK food chain Morrisons rose 1.5 per cent following an upbeat sales update.

Analysts eyes have been fixed on the retail space as of late, as rising inflation in the UK continues to put the squeeze on consumers wallets. Just yesterday, ratings agency Moody’s downgraded the credit rating of Debenhams, one of the UK’s largest department stores, after the struggling retailer issued a shock profit warning which unnerved investors. 

While European markets continued to rise, US stock futures also point to a higher open, which is no surprise given that the S&P500 has hit a new record every single day of 2018 thus far.

In premarket trading the most active stock was Hewlett Packard Enterprise, which has started to rebound after investors bought the dip from major falls yesterday. Micro Focus, the UK’s biggest technology firm which performed a blockbuster takeover of HP Enterprise’s software business in 2017, saw its shares slip by 17 per cent after announcing weaker sales yesterday, which dragged down the shares on the FTSE100 and Hewlett Packard’s US stock listing too.

The key US indices continue their stellar run as we head into mid-January. The S&P has gained over 50 points in the last 5 days (see chart), fuelling investor optimism for the year ahead. In contrast, the index had lost over 150 points by the end of the first week of January 2016. President Trumps economic agenda and the synchronised global economic expansion are 2 factors helping to maintain the bull run in stocks on top of great year for corporate earnings in major American companies through 2017.

Related: It’s 2018! Here are Some Geopolitical Risks Investors Should Watch out For this Year

Samsung Predicts Major Gains

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ALL RIGHTS RESERVED © INVSTR LTD. 2017

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

 

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