The EuroStoxx 50 seeks to set new highs 

Exuberant is probably an appropriate adjective to describe how optimistic analysts are becoming about Europe’s earnings season. Earnings growth expectations at STOXX 600 companies have soared to 71.3% YoY, up from the already impressive 61.2% last week.

Moderate optimism continues to prevail on Europe’s stock markets. After knowing the decision of the US Federal Reserve to keep its monetary policy intact yesterday, everything points to a new session of bullish tranquility in the Old Continent. 

The bulls are looking, once again, for the EuroStoxx 50 to be able to mark new highs for the year and exceed 4,040 points. This is where the last fall began. Thus, this area will ward off fears. 

Watchful to US GDP and business results

The results season is one of the main catalysts that have moved the markets in recent weeks.

After technology giants such as Apple, Facebook and eBay released their quarterly earnings figures yesterday, almost 225 companies have been accountable to the US market. 

The main macro reference in the session is the US GDP in Q1 points to a growth of the American economy of +.6.6%. GDP and Weekly Unemployment Claims maintain the positive bias.

85% of the firms have beaten the forecasts of the market consensus. Bloomberg revealed profits 25% higher than initially estimated.

It came as a result of driven by the good rate of vaccination. It allows the reopening of the economy. At the same time, the impact of fiscal stimuli (third package of $1,9bn) and a high household savings rate supported the economy.

The Fed remains dovish and declares that it is not time to talk about tapering yet. Yesterday, Biden defended the benefits of an Infrastructure Plan ($2.2bn) and a Plan for Families and Education ($1.8bn) that could bring new stimuli to the economy.