Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
After the recent rally European markets negotiate in consolidation. A major theme of the day is to see if the European indexes will confirm the maximum annual achieved last week. If stocks confirm last week rise, the positive trend of 2015 will remain intact.
Last Friday the US stock market closed high driven by some corporate news. Mergers and acquisitions continue to be one of 2015 issues, with the acquisition of BG Group by Shell to increase expectations of more mergers and acquisitions in the oil sector. Despite the drop in crude oil price in recent months, the oil sector has several opportunities especially for larger companies who have accumulated enough liquidity in recent years. Thus, rather than increase investment as they had planned before the abrupt oil fall, some of the largest companies in the sector have preferred to acquire smaller companies, thereby not only gain market share as synergies. Another news that contributed to the positive investor sentiment was the General Electric decision to accelerate the restructuring process. After the financial crisis of 2008/2009, GE decided to go back to being an essentially industrial conglomerate, alienating its finance unit GE Capital. Last Friday, GE announced that it will sell the assets (financial and real estate) of the company, which will have in a first impact a cost of 16000 M.USD but later will generate over 50,000 M.USD, most of which will be applied in a share buyback program, thus rewarding their shareholders. In response to this decision, the shares of GE appreciated 10.80%. As of today, the earnings season will be more intense, becoming the main driver of the equity markets in the coming days.