Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
European markets negotiate without major fluctuations. The recovery of the euro and the disappointing data given by the manufacturing industry in China should weigh negatively on the main indexes. Today will be published the final data on economic activity, measured by the PMI indexes. Economists estimate a further improvement in recent months. The impact of these data in the equity markets should materialize via forex market. If the PMI indexes indicate a higher economic activity than estimated the Euro will tend to value itself, penalizing European equities. The issue of Greece has been relegated to a secondary plan but retains its importance. The government in Athens will present an economic plan until next Monday, while the President of the European Parliament, Martin Schultz noted that it is possible to reach an agreement this week.
The American stock market indexes closed with slight losses. After the strong gains accumulated after the meeting of the Fed, the US markets paused. In some sectors, such as biotechnology, witnessed a profit taking (-2.25%). This sector has been one of the best performers on Wall Street last month, recording 9 positive sessions before yesterday. In recent months the slower pace in home sales is mostly due to bad weather in the eastern United States and the growing lack of homes for sale. Several members of the FED will participate in financial events, being closely followed by investors. Yesterday the Vice President of the FED, Stanley Fischer, said that interest rates are expected to increase this year and the timing will be dictated by the further improvement of labor market conditions and the approach of inflation to 2%. Richard Fisher, Dallas Fed’s former Governor, argued that the central bank should increase sooner interest rates, as their effects on the economy are not immediate, so the sooner occur these smaller increments, smaller shall be the negative consequences of that decision. February inflation will be published today, measured by the consumer price index.
Asian indexes closed with contained losses. The main event of the day was the publication of the PMI index on manufacturing activity in China, prepared by HSBC. This index fell to 49.2, the minimum of the past 11 months, signaling a contraction phase. Economists estimated a reading of 50.6. This finding reinforces the evidence of an economic slowdown in China, increasing the possibility that the Beijing authorities might announce new stimulus measures, which was already mentioned by the country’s Prime Minister two weeks ago