DOW JONES BREAKS THROUGH 29,000

The risk appetite in the markets increased as the US removed China from the list of exchange manipulators before the phase 1 agreement between the two countries. Thus, the Dow Jones index increased 0.3 percent to close the day at 28906. The optimism in the markets also increased with the positive expectations about the earnings season which will start in the USA. In the Dow Jones index, the basic ingredients sector was distinguished as the most appreciated sector with 1.7 percent, followed by the information technology sector with 1.3 percent increase. On the other hand, the health sector was the most depreciating sector of the day with a decrease of 1.6 percent. The upward revision of views on Apple shares triggered a positive outlook in the Dow Jones index. In addition, while Cisco gained 1.8 percent, Goldman Sachs' earnings reached 1.3 percent.

In the first quarter of the balance sheet of Citiboup 2020 announced today in the US, earnings per share exceeded expectations by $ 2.15, while the company's revenues increased significantly by $ 18.38 billion. Wells Fargo was below expectations in the first quarter financials.

Today, US President Trump has announced that he will attend the Davos Summit. Last week, following increased tensions between the US and Iran, US President Trump made moderate statements. However, as of this week, US President Trump has announced new and heavier sanctions on Iran. Despite this announcement, we found that the risk appetite in the markets was partially preserved. On the other hand, the Iraqi administration announced that it would never step back from the decision of the parliament to remove US forces from the country. While these developments have played a weakening role in increasing the earnings of the indices, on the other hand, the announcement that US President Trump will wait for the November 2020 elections for the second stage agreement with China is also felt negative.

Looking at the technical outlook of the Dow Jones index, it is seen that the index, which is in a record upward movement, continues to move around the 29000 level. A further upward trend may start in the index, especially if the 30000 point is exceeded, which will be a historical peak on the index side. Otherwise, we are following a withdrawal that may occur in the index within the sudden upward movement within the framework of 28700 support.