Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
The European indices negotiate without major fluctuations, after the words of the President of the Federal Reserve US, Janet Yellen on last Friday. Today should be characterized by a lower than usual trading volume, since Frankfurt, London, Zurich, as well as the US stock exchanges, are closed. Early in the session, investors in Spain may be influenced by the outcome of the elections held yesterday in the country. Despite the earning season is completed, some companies continue to provide information on its activity. The German Merck said it expects its sales to increase about 5% in its core segments, before the new drug development perspective.
Last Friday, the US market ended with slight losses, though in weekly terms the S & P500 index have achieved record earnings. The selling pressure accentuated closer to the end of the session after the Federal Reserve Chairman, Janet Yellen have said they still expect the central bank raise interest rates this year. These words, supported the view that the Fed is prepared to raise interest rates in 2015, although some economic indicators have recently suggested that the economy is not so solid. Janet Yellen has even add this speech that some less encouraging economic data can be regarded only as “transient”, with most indicators point to a strong enough economy to the central bank proceed accordingly. However, the market had already reacted negatively to the release of inflation in the country. Inflation, as measured by the consumer price index, increased 0.10% in April compared with March. In annual terms, inflation retreated 0.20% in April over the same month of 2014. However, this indicator has been tampered with by the volatility of some goods as fuel and food. For example, in April the price of fuel fell 1.70% after increasing 3.90% in April. Food prices were unchanged in April after 0.20 retreated% in March. Leaving aside these goods, inflation rose 0.30% in April over March and 1.80% in annual terms. This last variation approaching the inflation of 2% desired by the Fed. Given these data, the money markets increased the odds the Fed raise rates in the last quarter of 2015, reducing the odds of the first increase only occur in 2016. Today, US markets will be closed, celebrating the Memorial Day. On this day are reminded Americans who died in all military conflicts since the Civil War.