Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
Stock markets negotiate without major fluctuations. The progress of the negotiations between Greece and its partners will continue to capture the attention of the markets. Yesterday, after the European close, the ECB decided to keep the emergency line to provide liquidity to Greek banks, slightly increasing the amount of 65000 M.€ to 68300 M.€. In recent weeks, Greek banks have suffered a marked decline in deposits, thus increasing the ECB dependence. The access to this hotline to the Greek institutions will be reviewed within two weeks after the deadline given by the Eurogroup to Greece. Despite the latent threats, the oil fall, the fall of the euro, the ECB’s decision to apply the quantitative easing program in the Eurozone and the allocation of global investors are critical factors that have contributed to the good performance of European markets. European economies are the main beneficiaries of the oil price fall (reduces production costs and increases the disposable income of consumers) and euro devaluation (improves competitiveness in foreign markets for European companies). To help is also the good results (in relative terms) of European companies.
US markets closed yesterday with contained variations and the futures of the S&P 500, may hit new highs today. The minutes of the last meeting of the FED showed that the central bank remains expectant regarding the increase in interest rates. Although this decision was unanimous, some members of the Fed showed their concern about the credibility of this institution to the extent that the objective of keeping inflation close to 2% does not seem achievable in the short term. Despite these doubts, the initial reaction of the stock market indexes as well as the sovereign bond was positive. Housing starts and Building permits fell in January, more than the estimated by economists. The explanation for these data, can be explained by the severe winter weather that delayed the onset of various building projects. According to the FED, the industrial production increased 12.20% in January, less than 0.30% anticipated. On the positive side, the highlight was the production of capital goods and power (due to the harsh winter). On the negative side, the decline in oil and gas prices negatively conditioned its production.