Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, the European equities traded without major fluctuations. At this early stage, each sector will be influenced by specific topics. The European pharmaceutical sector may negotiate under some pressure after the falls suffered by US biotech shares. The food and beverage sector will be in focus after the AB Inbev, the Belgian-Brazilian company listed in Brussels, have improved their offer by British SABMiller for 42.15 GBP per share. The oil sector is expected to register a overperformance due to the appreciation of oil prices in Asian markets, having reached the maximum of the last month. Yesterday, the US Energy Department said it expected world demand accelerates in 2016, after two years of decline, which should be accompanied by a reduction in supply from producers outside the OPEC. The recent stock market gains appear to have improved the feeling of some institutional investors. In a survey conducted by Reuters to 30 fund managers showed that most of them estimated European markets to value until later this year, but also expect high volatility before the uncertainty that a possible increase in interest rates may cause in the financial markets . On average, these 30 managers expect the DAX reaches 10312 until the end of the year, the Eurostoxx50 3794 and IBEX 10300. Most surveys in recent months, demonstrate that institutional investors have always shown their preference for European markets in detriment of the American.
American indices closed with modest variations, with the exception of Nasdaq which was penalized by the biotech sector’s fall. After 5 sessions on the rise, many investors have decided to reduce their market exposure, trying to reshape their perspectives on the current situation. The impact of the Nasdaq drop on other indices was limited by the rise in oil sector (reflecting the appreciation of crude oil) and the good performance of the shares of Dupond. The trade balance registered a deficit in August well above the estimated (48300 M.USD vs 42500 M.USD), while imports increased 2.60% and exports declined 2%. This fact limits the GDP growth in the 3rd quarter. In addition, the fall in exports, especially to emerging economies, may signal that American companies have suffered a fall in revenue in some areas of the globe. This is particularly relevant in the given moment as is approaching the earnings season. Today, the trend of the session should be dictated by oil performance (which has impact on its related sector as well as in mining and industrial) and biotechnology shares (which at the micro level is the main catalyst for the Nasdaq).