Morgan Stanley: US stock recovery does not mean that the danger has completely disappeared

Moral strategic experts in Morgan Stanley said morale to the US stock market is an improvement, but it is still early for investors to completely explain the disappearance of the danger. The team, led by Michael Wilson, explained that there are four factors needed to install a more sustainable increase, but only two have been achieved, according to a memorandum of clients issued today: “Optimism about a trade agreement with China and the stability of profit expectations.” They added to the memo: “As for the other two factors on our list, they are more likely to facilitate monetary policy than the US Federal Reserve and a decrease in returning effects for ten years to less than 4% without indicators over an economic recession, and they have not yet reached.” The US Federal Monetary Policy was the president of the US Federal Reserve, Jerome Powell. The team commented on this statement by saying: “In our opinion, the returns are more than 4.5% a burden on market judgments.” The future contracts of the “Standard & Poor’s 500” index jumped and the assets of risk rose today, after the United States and China agreed to a temporary reduction in mutual customs duties, in a move aimed at calming commercial tensions and giving the two parties three months to solve their differences. After the S&P 500 index lost almost 19% since its peak last February due to the fear of a global trade war, the index has now managed to restore about half of these losses, with the US administration starting commercial discussions with its partners. Customs duties were the biggest concern of companies during the season of announcing the profits, as mentioned in the quarterly bargain conferences at record levels, according to the analysis of Morgan Stanley. It also withdrew about 30 companies or suspended their future guidelines due to the uncertainty associated with customs duties, especially in car sectors, perennial commodities and industries. Nevertheless, strategic experts indicated that the shares of these companies recorded an average increase after releasing their results. A trade agreement with China, according to Wilson, the rise of the “S&P 500” index above the previous resistance level at 5500 points and the return to the scope previously known as ‘Liberation Day’ (between 5500 and 6100 points) means that the achievement of additional profits will be upwards by a commercial agreement with China and the acceleration of profit judging. Experts concluded their analysis by saying: “The next and most important technical test of the Standard & Poor’s 500 index As this luxury Golf started about a month ago, it will be at the intersection of the two moving averages for 100 days and 200 days (between 5750 and 5800 points).”