A handful of technology firms and last year’s laggards have so far driven the heady rise in U.S. and global stock markets this year, but bumper earnings surprises could now lift more sectors and stocks and broaden the rally, analysts say.
That compares with a much broader rally in past years, when the top 10 per cent winners only made up 14 per cent of the overall market upside from March 2020 to early 2022.The second quarter earnings season has started positively for cyclical sectors, with over a quarter of the global companies announcing their results so far, Refinitiv Eikon data showed.
"The upcoming earnings season has the potential to broaden the rally for sure. Earnings surprises - to the upside – from a wider breadth of stocks is likely to make investors consider names outside the cohort ," said Puneet Singh, director of quantitative research at Societe Generale, based in Singapore.U.S.
In Asia, Japanese stocks have surged, helped by their cyclical recovery and cheaper valuations, while in Europe, robust travel demand has boosted firms such as aero engineer Rolls-Royce and the region's biggest hotel group Accor. Over the past month, the communication services, mining and financial sectors have all posted about 5 per cent gains, outpacing the tech sector's modest 2 per cent rise. However, the tech sector has surged 34.5 per cent this year, leading all other sectors.
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Fuente: ChannelNewsAsia - 🏆 6. / 66 Leer más »