Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
European equities retract led by yesterday’s macroeconomic issues, today’s session will focus on a more micro-economic matters. The oil sector is expected to continue to excel. The automotive sector will be the venue of two factors that are opposite. On the one hand, the recent appreciation of the euro, which in part penalizes the competitiveness of this sector. On the other hand, continue to accumulate evidence that the recovery of the automobile market is accelerating. In March, car sales in Europe grew 8.50%, highlighting the Spanish markets (41% under an incentive program) and Italian (15%). In terms of results, Unilever reported sales for the 1st quarter above expectations, thus revealing an improvement compared to last year, when the company was hit by the situation of economic markets, particularly the slowdown of the Chinese economy.
American indexes closed higher yesterday, with the highlight of the oil sector. Oil shares have benefited from the recovery of crude oil, which is explained by the interruption of the rise of the dollar against major currencies, the closure of vendors positions by several hedge funds and some evidence that the increase in supply may not be as consistent as previously anticipated. In addition, yesterday the US Department of Energy reported that the oil reserves of the country increased by only 1.3 million barrels instead of 3.21 million estimated. In addition to the recovery of crude oil, oil shares gained the attention of many fund managers who in recent months had a lower exposure to this sector than their benchmarks. Thus, in recent days, many fund managers have purchased shares of this sector. The earnings season continued with most companies beating analysts’ forecasts. Bank of America was the main exception to report a quarterly EPS of 0.27 USD and revenue 21200 M.USD. Both items were below expected EPS of 0.29 USD and anticipated revenue of 21510 M.USD. Shares of Bank of America corrected 1.14%. Intel reacted positively to the publication of their results (+ 4.26%). Today, attention will be focused mainly on business results, especially the big banks. The day will be equally intense in interventions of members of the FED. Among today’s participants is included the fed Governor of Atlanta (18:00), the Fed Governor of Cleveland (18.30), the Fed Governor of Boston (19.00) and most relevant the Vice President Stanley Fisher (20.00).