New York City the S P 500 rose by 1113 and 1

Stock markets start the year 2011 in marching band. Backed by good manufacturing indicators on both sides of the Atlantic, great American and European indices completed yesterday in increase, continuing their momentum after a month of December already very positive. Frankfurt has thus gained 1.09, Amsterdam 1.49 and Paris 2.53, at the head of the European places. The volumes are however remained limited by the closure of the place of London. New York City, the & S P 500 rose by 11,13 and 1.46 Nasdaq closing. The MSCI emerging markets index climbed on his side to a above 31 months.

"There is apparently a bias very"bullish"Bull in the beginning of this year, based on the attractiveness of valuations and the prospect of the profits of the business forward again in 2011", summarizes the Nomura strategist Ian Scott. This bias was encouraged as early as the morning by the publication of PMI indices in the euro area for the month of December, compiled by Markit to purchasing managers. The growth of activity in the manufacturing sector accelerated for the fourth month in a row, in a bond of the catch command and a clear improvement in terms of employment. The PMI index thus settled in 57.1 month last, against a level of 55.3 in November. The December figure reflects, once again, the leading role of the Germany and the France in the resumption of the industrial sector of the euro area. But unlike the previous months, "peripheral" Nations have not done. Including the Italy, where index is the highest since the spring of 2007. "The index has improved significantly in Italy, but Ireland also and in Spain, said Julian Callow of Barclays Capital. It is for us a very encouraging sign which shows that tensions in financial markets are not strong enough to reverse the overall positive sentiment in the manufacturing sector.

The windfall for businesses

In the US, activity in the manufacturing sector has experienced his side his 17emois of growth. The ISM index settled at 57 for December, according to forecasts. "This index, which had given signs of weakness in the spring, proves to be remarkably resistant, is Bruno Cavalier, at Oddo Securities." What to remember, this is the end of the hole of air which had so troubled investors late last spring, creating expectations of "double dip" and pushing the Fed to the implementation of the "QE2" policy of quantitative easing, Editor's note. This opens opportunities for accelerating growth in 2011.

The fears of the economy away from relapse, investors may start to focus on the situation of the companies and the levels of development. "Markets, in their role as forecasters, will gradually abandon the theme of binary risk (recovery-recession and default sovereign-survival), accept a scenario of recovery and, ultimately, focus on microeconomic factors", is thus believe Luke Stellini in Invesco Perpetual.

Companies have very important cash. According to estimates, US companies would hold approximately 1,000 billion in cash and European societies between 600 and 700 billion. A windfall that they could use to increase their investment, raise levels of dividend in 2011 and 2012 and boost mergers and acquisitions.