Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
The European indices started the session trading down, again with the debt market to influence investor’s decisions. However, attention should also be focused on the evolution of the Euro / Dollar after yesterday the dollar having depreciated following the publication of retail sales in the US, an indicator that disappointed the market. In business terms, Telefónica unveiled its quarterly results. Revenues (11542 M. €) and EBITDA came slightly above forecasts, while net income came out well above estimates. The Italian oil company Eni will again be keen to reduce its stake in Saipem, after leaving pending the sale of its oil services unit due to the fall in crude prices. The Generali insurance company said operating income increased 6% in the first three months of the year, as growth in the life insurance business offset the segment of remaining insurances. Greece’s economy fell back into recession in the first quarter, data released Wednesday Showed. The contracting economy Increases the Measures on Tsipras to meet conditions in September by euro-region Governments and the International Monetary Fund for accessing financial aid.
“Greece will sink without reforms,” Varoufakis said in a speech Earlier. “Our target is for the deal we Achieve to lead to an exit to the crisis so we can have the comeback. The main thing is for it entails an agreement that escapes from an austerity trap.”
Investors also await the ECB President Dragui’s speech which will be held today at 16:00H.
For the third consecutive session, the American indices ended down but with modest variations. Initially the reaction to the retail sales indicator was positive, as investors kept an expectation that with these data lower than forecast the Fed will delay the increase in key interest rates. However, near the end of the session, this feeling has changed, so the buying pressure was attenuated, leading markets to a virtually unchanged close. Retail sales remained unchanged during the month of April, undermining the belief of many investors that the US economy will recover in the 2nd quarter after a sluggish Q1. Oil negotiates around 67 USD a barrel, after the release of news about a slowdown in oil production in the US.