The Effect of US Fundamentals on the Moroccan Stock Market Pre- and Post- FTA

The relationship between macroeconomics and the stock market in developed countries has been for many years the object of many studies and research. However, few studies have been conducted about emerging countries and especially in the case of Morocco there is a lack of studies in this area. Therefore, this paper will be the first to analyze the impact of US fundamentals, including industrial production, real money supply and the S&P 500 on Moroccan stock prices before and after the Free Trade Agreement (FTA) signature. This study enables us to reduce the gap between the theoretical framework and research conducted for other countries. Our results showed that US macro fundamentals have a slight impact on the Moroccan stock market after the signature of the FTA and that US industrial production in particular highly influences the Moroccan index compared to the other variables studied.