Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
European markets trade at the beginning of the session with slight gains. With the absence of relevant economic indicators, today investors should focus attention on business news. This week has been characterized by news of business consolidation movements as well as the depreciation of the Euro, which yesterday has reached the minimum against the dollar since March 19th. The presentation schedule of business results is now being filled, although the earnings season in the US traditionally start earlier. The retail sector will call attention on the day after the Carrefour have presented figures on better sales than estimates, due to growth in Latin America and to the improvement of hypermarkets in the domestic market. In turn, the mining companies may be affected by the decline of about 30% in one month, of futures price on the iron. The issue of Greece remains one of investors’ concerns. Yesterday Greece Government paid part of the loan to the IMF in the amount of 448 M. €, but according to Reuters, the remaining eurozone countries imposed to Athens within six working days for the government to give more details about a retirement plan that includes cuts that the Eurogroup want before giving consent to a release of a 3rd tranche of the loan (€ 7200 M.) suspended since before the elections that gave victory to SYRIZA. The next Eurogroup meeting is scheduled for April 24. However, Standard & Poor’s will update the classification of the sovereign debt of some countries, including Spain.
Yesterday the US stock market closed with modest gains, as investors reacted to disappointing results from Alcoa and to the labor market indicator. In sectoral terms, the energy companies (due to the oil price recovery) and pharmaceutical led the valuations. The aluminum producer reported for the first three months of the year a recurring earnings per share of 0.28 USD (vs. estimated 0.26 USD) supported by revenue growth, which was originated by strong volume in the divisions of car parts and aircraft, as well as by higher aluminum prices. However, revenues came short than estimates (5820 vs 5940 M.USD M. USD), by which the respective shares fell more than 3%. On the labor market, the number of weekly claims for unemployment benefits rose by 14,000 to 281,000, below the 285,000 predicted. However, the average of the last 4 weeks decreased in 3000 to 282,250, thus reaching the lowest level since June 2000.
In China, the main gauge of inflation, the consumer price index, rose 1.40% in March compared with the same period in 2014, still below the target of “about 3%” advocated by the Chinese government for the year 2015.