Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
European markets opened with some gains in a technical reaction to accumulated losses during yesterday’s session, which was due to profit taking rather than fundamental factors. Today will be marked by the publication of economic indicators on both sides of the Atlantic. In the Eurozone, the PMI index for the services and the manufacturing industry will be published. The activity of the services should have contributed the most to the improvement of economic conditions in the eurozone. The level estimated by economists to 53.5 for economic activity corresponds, according to some calculations, an increase of about 0.30% of GDP.
Yesterday American stocks fell after the previous session’s gains. The publication of car sales convinced many short-term investors to undertake capital gains. This pattern was most evident in the technology sector, which has led the Wall Street rally in this last phase. In the technology sector, shares of semiconductor companies had the hardest hit, registering an average drop of about 2% after gaining 12% in February. During this month were 16.16 million cars sold, less than the 16.7 million anticipated by analysts. This reading is in addition to a number of indicators have pointed to a loss of momentum in the US economy earlier this year. For now and despite yesterday’s reaction of the stock markets, investors have not given too much importance to these signs of slowing, on the contrary, have them interpreted as a factor which may delay the process of interest rate hikes. On the positive side, the highlights were the sectors of utilities and oil. The financial sector declined slightly on the day that the President of FED criticized the way some banks take risks and misconduct that some institutions had, in past years, the trading of financial captives. Macroeconomic data should trace the trend of the stock markets in the short term, with the publication of the employment report in the US the key element of this week. Today will be published the ADP report, which measures job creation in the private sector. This indicator does not have a high correlation with the official employment report but can have an influence on investor sentiment.