Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening European markets traded slightly higher, having adjusted downwards shortly after the beginning of the session. Today’s session starts without relevant business news and with an economic agenda also quite meager. In this way, there can be expected more expressive movements by producers of raw materials, after being revealed economic indicators in China. Also noteworthy within this sector to a news: Billiton said that it will reduce 380 jobs at one of its mines in Australia, giving as justification the global market conditions in the natural resources sector, as well as its aim to a sustainable project . In parallel, the market may qualify for some optimism regarding the situation in Greece, after being reported that Athens wants talks with its international lenders with a view to a third financial assistance program, to be completed tomorrow. On 20 August, Greece has to repay € 3200 M. to the ECB.
Last Friday, the US market ended lower, with the Dow Jones index accumulating the largest number of daily losses since the summer of 2011. At issue was the slump in producers of raw materials and partly the publication of the employment report raised expectations of a rise in interest rates already at the September meeting. In July, the US economy generated 215,000 jobs, slightly lower than the 223,000 estimated on average by economists. Readings of May and June were revised upwards, having been created over 14,000 jobs than previously calculated. Wages increased 0.20% from the previous month to 24.99 USD (measured per hour). The unemployment rate remained unchanged at 5.30%. In his last speeches, Janet Yellen said the central bank would like to see further improvements in the labor market before increasing interest rates. In 2015, the US economy has created an average of 226,000 jobs per month. The July reading falls short of that number. However, in recent months, job creation has been hampered by the divestment of oil companies, which has resulted in redundancies in some states like Texas or North Dakota. Excluding this sector and the mining, other sectors of the economy have recorded growth of dynamic employment. Most economists argues that these numbers are enough for the Fed to increase interest rates at the September meeting. The money market assigns a lower probability than 50% for this to occur. In business terms, as mentioned, producers of raw materials headed losses, with oil prices reaching the minimum of the last four months. In the short term, given the strong accumulated losses, it is not excluded that the mining and petroleum sectors to initiate a technical recovery. The Cheniere Energy rose 5.60%, with the news that investor Carl Icahn acquired a stake of more than 8% of the natural gas company. In turn, Nvidia, known for manufacture of video cards, spearheaded the S&P500 earnings, with an appreciation greater than 12%, after presenting results last Thursday after the closing of the session.
Asian Markets closed higher, though close to the minimum achieved in the last year and a half. In Tokyo, the stock market reacted negatively to the publication of employment data in the US last Friday, and some companies with exposure to the Chinese market, such as steel producers, were pressed by the weekend data release: exports fell at the fastest pace in four months, in addition to notice a sharp drop in producer prices.