The rally in the stock markets | 30 Octubre 2020

#SP500:

U.S. business activity grew in October at the strongest pace since February 2019 and business expectations advanced to a more than two-year high. The IHS Markit flash composite index of purchasing managers at manufacturers and service providers increased to 55.5 from 54.3. “The U.S. economy looks to have started the fourth quarter on a strong footing,” Chris Williamson, chief business economist at IHS Markit, said in a statement. Assets on the balance sheet of the US Federal Reserve reached a new all-time high of $ 7.17 trillion. The growth of assets is primarily due to purchases of treasury and mortgage bonds. This is a positive signal for the U.S. stock market!

Trading recommendation: Buy 3425 and take profit 3501.

#Coca-Cola:

The company's positive financial results signal a continuation of the uptrend. Net income totaled $1.74 billion, or 40 cents per share, down from $2.59 billion, or 60 cents per share, last year. Adjusted EPS of 55 cents beat the consensus for 46 cents. Revenue of $8.65 billion was down from $9.51 billion last year but ahead of the forecast for $8.36 billion. Revenue improved compared with last quarter. The company continues its revamp, which includes a 50% reduction in the number of brands in its portfolio. It has already announced that Odwalla juices, Zico coconut water and Tab diet soda will be discontinued.

Trading recommendation: Buy 50.01 and take profit 50.88.

FTSE100:

EU chief negotiator Michel Barnier is planning to extend his visit to London until Wednesday amid cautious optimism over the progress of post-Brexit trade talks with Britain. The British team would travel to Brussels on Thursday for more talks and that next Saturday had effectively become the deadline to decide whether the two sides could reach a deal. Britain and the EU have made good progress in talks on a last-minute trade deal that would stave off a tumultuous finale to the five-year-old Brexit crisis. This is a positive signal for the British stock market!

Trading recommendation: Buy 5790 and take profit 5855.