Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
Stock markets negotiate without major fluctuations. The main point of the economic calendar today is the publication of inflation in several European countries. The pace of the slowdown in prices should have been lower in February due to the interruption of the sharp drop in fuel prices. Investors’ focus will be mainly on inflation in Germany but other countries will publish their numbers. For Italy, economists estimate a monthly bending of prices 0.20% in Spain and 1.3% in annual terms. In addition to the data on inflation in some European countries, investors will focus on the various macroeconomic data in the US. Oil shares shall be under pressure after yesterday’s decline of 3.89%. In the Asian session, the price of crude managed to recover some of these losses. Regarding the earnings season, Lloyd’s reported its first annual profit in the last 5 years. In 2014, the income reached 1,500 M.GBP, below the estimated 1800 M.GBP. The bank announced that it will distribute a dividend of 0.75 GBP. The chemical company BASF announced a quarterly EBITDA of 1460 M. € compared to 1380 M. € anticipated. The reason for this positive deviation is related to the oil price fall, which had a positive impact on company costs. Airbus announced an annual profit of € 4070 M. and exceeded estimates of 3840 M. €.
US shares closed yesterday without major fluctuations. While the Dow Jones and S & P were penalized by the weakness of the oil sector, the Nasdaq benefited from some corporate news. Continuous signs of an abundance of supply penalized the price of oil (-3.89%), which negatively affected the performance of the oil sector (-1.80%), whose fall overshadowed the modest rise in other sectors. The Nasdaq benefited from the good results of Salesforce.com and the acquisition of Emulex by Avago Technologies. Shares of Apple appreciated 1.30%, after the company announced an event (which probably mark the launch of the new Apple Watch) to the 9th of March, which is expected in April or May. The consumer price index decreased by 0.70% in January from the previous month, more than the 0.60% estimated. Weekly applications for unemployment benefits rose last week to 313,000, more than the 290,000 estimated. Despite this positive deviation, the greater dynamism of the labor market observed in recent months remains intact. The possibility of the occurrence of a correction in US markets is enhanced by the technical situation of Apple, which was the main driver of rising Nasdaq. After an increase of about 20% since the beginning of the year, various technical indicators have reached extreme levels, increasing the likelihood of a short-term technical correction from Apple. A hypothetical decrease of this stock could dictate a pullback in the Nasdaq.