Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, the indices of the Old Continent rehearsed in low before the renewal of the tension in the Korean peninsula. Another issue that should catch the attention of investors is the speech of Prime Minister Theresa May on the progress of negotiations with the European Union on Brexit. Recall that on Sunday will be the legislative elections in Germany. The polls point to a victory by Chancellor Merkel, although without an absolute majority.
After nine consecutive positive sessions, the Dow Jones ended in low, a pattern also observed in the other indices. Investors continued to incorporate the results of the FED meeting into their perspectives but the weakness of the technology sector was the hallmark of the session. This weakness stemmed from the continued decline in Apple shares, which lost 1.30% yesterday. The title has been penalized by technical problems AppleWatch and some skepticism regarding the marketing of new iPhones, namely the iPhone 8 and iPhone 8 Plus. The correction of Apple shares coupled with the absence of stock market trends from Google and Amazon raises some questions about the sustainability of the Nasdaq rally. In the Nasdaq case, the engine of the rally earlier this year had been called FAANG (Facebook, Amazon, Apple, Netflix, Google). Now with most of these stocks losing momentum, several warnings come up about the sustainability of the index’s medium trend.
Asian markets closed with contained losses in a session marked by a negative surrounding. The North Korean Foreign Minister warned that his country could test a hydrogen bomb in Pacific waters. This announcement generated a risk aversion but only assumed more significant proportions in the South Korean market, with the local currency reaching the low of the last month against the US Dollar. In a more economic sphere, Standard & Poor’s reduced Chinese rating of AA- to A +, citing the strong growth of credit assignment as the main risk to the economy, fueling speculation in some economic activities and making investments with little rational economic development.