US indices extended their recovery overnight with all of the influential FANG stocks in the winner’s enclosure led by Netflix (NFLX US) +4.2% and Nvidia (NVDA US) +3.7%. Telsa (TSLA US) reported well after-market beating expectations, sending the stock up over 5% in late trading which should add to support for US Futures today. Under the hood, General Motors (GM US) raised its profit outlook after strong first-quarter numbers, the stock closed up 4.3%, while PepsiCo (PEP US) earnings missed analyst expectations, resulting in a 3% dip by the stock. Earnings reports will continue in earnest this week, with Alphabet (GOOGL US), Meta Platforms (META US), and Microsoft (MSFT US) likely to have a significant impact on market sentiment in the coming sessions.
- US earnings season is in full swing, and so far, so good, which is helping alleviate the larger macro concerns that have been weighing on markets.
MM remains cautiously bullish towards US stocks
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Overnight, the FTSE, which is far more correlated to the ASX than the US S&P500, posted fresh all-time highs only a few days after indices were plunging as concerns of interest rates being higher for longer, and escalating tensions between Iran and Israel, scarred short term investors/traders. We see no reason to call a top for UK equities the first day after they break above their 2023 all-time high – an encouraging read-through for the ASX.
- We remain bullish towards the FTSE as it leads major global indices higher through 2024.
MM remains bullish toward the UK FTSE
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