Positive momentum expected to continue in global equities

On Friday, the Dow closed 0.37% higher to 24,831.17, after gaining 2.3% through the week

Markets are expected to stay positive this week after strong earnings and jobs data from the United States started a rally last week.

Traders will also be keenly watching how newly imposed sanctions on Iran will play out.

“Earnings season, sanctions are on the top of the mind. The market ended on a positive note on Friday. I don’t see a big reason for markets to sell-off next week. The general vibe is positive. I don’t see any major headwind,” Nadi Bargouti, head of asset management, managing director with Emirates Investment Bank told Gulf News.

On Friday, the Dow Jones Industrial Average closed 0.37 per cent higher at 24,831.17, after gaining 2.3 per cent through the week. The S&P 500 index closed 0.17 per cent higher at 2,727.72 after rising 2.4 per cent last week. The Nasdaq Composite Index gained 2.7 per cent in the previous week before closing flat on the last day of the week.

The earnings season has been strong so far. About 91 per cent of the companies in the United States have reported an earnings growth of 25 per cent, and 77 per cent of those companies have reported a positive sales surprise.

“We have seen over 24 per cent in earnings growth. About 80 per cent of the companies have beat analyst forecast, that is a positive. The second quarter will be looked at if companies will post strong earnings growth,” Bargouti said.

“The focus of investors will shift towards central banks and the evolving geopolitical scenarios,” Aditya Pugalia, a director with Emirates NBD, said in a weekly note.