Daily Market Analysis By FXOpen

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Morgan Stanley (MS) Shares Display Strength Ahead of Earnings Release

The stock market is eagerly awaiting the start of the quarterly earnings season. Traditionally, it kicks off with reports from major players in the financial sector, including Morgan Stanley (MS). The bank's earnings report is scheduled for tomorrow, Thursday, before the opening of the main trading session.

According to Yahoo Finance, analysts expect:
→ Earnings per share (EPS) to be $1.62, indicating a 43.4% increase compared to the previous year;
→ Revenue to reach $14.8 billion, reflecting a 14.7% rise year-on-year.

Meanwhile, MS’s share price may also be influenced by internal organisational changes at Morgan Stanley. The bank has created a new division to enhance client relations and appointed a new head of wealth management.

MarketWatch notes that the upcoming earnings season could be the strongest in three years (based on FactSet data), with the financial sector likely to be the largest contributor to profits this season. Furthermore, a technical analysis of Morgan Stanley’s (MS) stock chart suggests that market participants are optimistic.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

 

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European Currencies Correcting After Sharp Decline

At the beginning of the week, the US dollar managed to reach new highs against certain currencies. For instance, the EUR/USD pair hit a recent low of 1.0200, sellers of GBP/USD tested the support at 1.2100, and the USD/JPY pair is stubbornly trying to stay above 158.00.

EUR/USD
The US employment report released last Friday provided significant support to the US dollar. The increase in new jobs at 256K, against a forecast of 164K, and the drop in the unemployment rate to 4.1%, versus the expected 4.2%, suggest that a change in the Federal Reserve's monetary policy may be anticipated in the near future.

The upcoming inauguration of President Donald Trump and the associated threats of new trade wars are putting additional pressure on EUR/USD.

On Tuesday, sellers of the EUR/USD pair managed to break the current year’s low at 1.0220. The price quickly bounced back, forming a reversal pattern, a "hammer." Technical analysis of EUR/USD indicates a potential continuation of the upward correction if buyers manage to hold above 1.0340. However, if the price drops below 1.0230, the recent low could be revisited.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.