Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
The European markets began Tuesday’s session with early strength, driven by yesterday’s close of US markets. The European markets were closed since last Friday, so today will mark the return of many investors after a few days of break associated with the Easter Feast. In the coming days, although the data in the US can influence the course of European indexes, especially through the exchange Euro / Dollar, investors will devote increasing attention to the situation in Greece. Yesterday the Minister of Finance of the country, Yanis Varoufakis told a Greek newspaper that Greece must achieve an outline of an agreement on the financing with its creditors at the meeting of finance ministers of the eurozone, scheduled for 24th April. The previous day he also said, after meeting with the managing director of the IMF, Christine Lagarde, that Greece will meet the repayment of approximately € 450 M to the institution next Thursday, for the first bailout of 2010. In the coming days, the government in Athens must present economic measures that will be subsequently discussed by the Eurogroup, sine qua non for the funds that Greece needs. Two weeks ago, the Greek Ministry of Finance had submitted a list of measures that have been dubbed by the Euro members as only “intentions”. In the wider economy during the morning will be known some indicators of economic activity on the Euro Area, in particular the PMI indicators. Have recently increased the signs of economic growth in this region. However, there are still some differences in the behavior of different economies that make up the euro: on the one hand we are witnessing the acceleration of the growth pace of manufacturing activity in Spain, Italy and Germany, in France continues a contraction trend, although less marked than in previous months.
Unlike European markets, the US markets were open yesterday. After initial losses, the market rebounded, ending with considerable gains that were justified once again with the expectation of investors regarding the stance of the Federal Reserve. In fact, last Friday, despite the stock market was closed (Good Friday), was known the employment report, which raised questions and some uncertainty about the current situation in the labor market: we are facing a temporary slowdown in growth economic or a longer deceleration state of the economy? The document published in March revealed that the number of jobs created in the economy was the lowest in the last 15 months, 126 000. Furthermore, the figures for January and February were revised downwards, so the increase in hiring in the first three months of the year slowed dramatically to an average of 197 000. The unemployment rate remained unchanged at 5.50%. For many analysts and investors, this report makes it more likely that the Fed may wait until the end of summer to raise interest rates for the first time since 2006 and was this same expectation that raised the markets and the words of the President of the New York Fed increased the optimism. William Dudley said that economic growth should accelerate soon, after a first quarter of a downturn that was due, in his view, to the bad weather that hit the country, to the appreciation of the dollar and the impact of the oil price fall in energy industry. His speech also suggested that the Fed will not raise interest rates until at least September. In terms of economic indicators, the ISM index was published yesterday for the services sector, which fell to 56.6 in March, from 56.9 in the previous month. However, the number came out slightly above estimates. Yesterday, the price of oil in the US rose, given the expectation that the agreement reached last Thursday between Iran and the world sextet (USA, France, UK, China, Russia and Germany) should not result in an immediate increase in oil supply to the markets. This agreement is based at the beginning of the limitation of Iran’s nuclear program. The agreement states that more than two thirds of Iran’s uranium enrichment capacity be dismantled and monitored over 10 years. To influence the rise in crude oil prices was also the fact that Saudi Arabia has increased the price per barrel in sales to Asia.