The European Indexes climbed. The expectation of tomorrow’s ECB meeting dominates the feeling of European investors. Today starts the World Forum in Davos, an event that brings together many politicians, economists and top investors, it is therefore an opportunity to gauge their perspective on the world economy. The slowdown in China’s economy is one of the issues, as is one of the causes for the cut in global growth estimates for this year. It is not excluded that some of these politicians to wave the ECB meeting tomorrow, which could have an impact on the course of stock market indexes. The earnings season is gaining a greater expression in Europe. The Dutch ASML, which is world’s largest producer of equipment for the manufacture of semiconductors, reported results and sales over the estimated, increased the dividend and announced a buyback program of own shares totaling € 1,000 M, which will last until 2016. ASML is confident for the 1st half of this year.
U.S. stocks rose for a third day as energy shares rallied and speculation grew that the European Central Bank will provide more stimulus. In any market phase is important to know what is the positioning and sentiment of global investors. Despite all the uncertainties on the horizon (global economic slowdown, political instability in Greece, the oil price decline, etc.), global investors have increased their exposure to stock markets. According to Merrill Lynch / Bank of America, the liquidity in investors’ portfolios is at minimum levels of the last six months (4.50% of the amount under management). On the one hand, this data is positive because it demonstrates the confidence that these investors have in stock markets. On the other hand, if liquidity is at low levels, investors no longer have many more ways to boost the stock market, unless they can capture the subscriptions of savers.