Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
Early in the morning, the stock markets traded without major fluctuations. After Greece submitted a proposal to extend the loan received, the Eurogroup will meet to discuss the proposal. Initially the meet was to be done by video conference, but will now be held a meeting in Brussels, which may favor an understanding. The news that the various statements made clear yesterday, the Greek proposal merited the opening of some countries and the European Commission itself but also skepticism in Germany and other countries like Finland and Austria. Although the deadline given by the Euro-group formally end today, it can not be excluded, in case of not reaching an agreement, extended talks along the weekend. In this context, the publication of the preliminary reading of the PMI indexes (purchasing managers index) has less importance than usual. It was anticipated a slight improvement on previous months due to already be reflected in the European economy the effects of the devaluation of the Euro, the fuel price fall and monetary environment even more beneficial, however the PMI values came out lower than expected.
On Wall Street the session yesterday was marked by oil prices fall and expectations in relation to developments in Europe. While the Nasdaq continued to benefit from investors’ preference for technological securities (which are very sensitive to economic cycles), the Dow Jones was penalized by the weakness of oil and actions by Wal-Mart results. Weekly applications for unemployment benefits last week amounted to 283,000, less than the 293,000 estimated. Still, the reading of this week confirms the recent dynamism of the labor market. The Philadelphia Fed Survey, which measures manufacturing activity in the region, fell in February from 6.3 to 5.2, against estimates of 8.5. Leading indicators of the economy, whose cycles precede the economy in 6 to 9 months, increased 0.20% in January, also below estimates of 0.30%. Today will be held to maturity of the options on US rates, which could be reflected in some volatility. Additionally, attention on Wall Street will fall upon developments in Brussels.