Wall Street continues to grow, can we expect this in Asia as well?

The US tax cuts continue to have a positive effect on US companies, with technology companies and utilities leading the rally today. At the end of the week, the reporting season will begin, which will give investors a clear idea of ​​how the companies have been doing the past year under the presidency of Donald Trump. Against the backdrop of positivism, Merrill Lynch's stress indicator marked a record low, reaching for the last time in mid-2014.

During the US session, the most profitable is the utilities sector, followed by technology companies. To a large extent, promotions also come from Fed members' statements that two lifting will be enough in 2018. This means that the USD will remain under pressure in 2018, and the country's exports will increase, which will also lead to better financial performance for companies.

Where to look for profits during the Asian session?
During the Asian session, we expect positivism to keep the growth in the technology sector in the US to positively influence the major technology companies in Asia such as Samsung and Sony. Against the backdrop of several Fed members, the financial sector, and banks in particular, are down. Given this, it is a good idea to avoid bank stocks in the Asian session, especially in China. We recall that the country has taken a major step towards reducing the banking sector regulation, which has a strong positive impact on the financial companies in the region, but for this reason, the financial sector in Asia has become highly sensitive to the ups and downs in the US and Europe.

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

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