Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, European indexes traded without major fluctuations. If there are no unexpected developments for Greece and considering the Wall Street holiday, today’s session should be less volatile than the last one. Yesterday, the volatility index was lower. The IMF announced a new program to support Greece would have to rise to 60 000 M. €., For a period of three years. In addition, the IMF argues that the maturity of Greek debt should be extended for a greater period of time. In the immediate, investors will monitor the polls as they arise. Some news sources submit that today, the Greek Constitutional Court is expected to rule on the constitutionality of the referendum that Tsipras Government promoted.
US markets closed with very modest gains. The positive signals given by the employment report countered the prudence of many investors before a long weekend, during which the referendum will be held in Greece. Thus, investors adopted a conservative stance, aware that Wall Street will open with sharp variations on Monday (as result of the referendum). According to the Department of Employment, the US economy created 223,000 jobs, less than the 230,000 estimated by economists. Wages have remained unchanged compared to May, contrary to economists’ forecasts pointing to an increase of 0.20%. The unemployment rate decreased to 5.30% but this decrease was mainly due to the smaller number of Americans who are unemployed and looking for work. The number of weekly applications for unemployment benefits last week reached 281,000, more than the 271,000 expected. The figures relating to orders to factories during May decreased by 1% compared to an expected reduction of 0.50%. Excluding transport this indicator edged up 0.10%. Today, US markets will be closed because tomorrow Americans celebrate the Independence Day. As the July 4 does not coincide with a working day, the holiday is anticipated for today.
In China, volatility remains very strong, reflecting the nervousness of investors. Having come to achieve a loss of 7%, the Shanghai Stock Exchange traded (at 7:20 AM) without major fluctuations. Besides the background reasons mentioned in previous publications, the fragility and volatility of the session today has to do with the news that the Chinese authorities will investigate malpractices in the stock market.