Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, European indexes traded slightly higher, after the recovery observed in the North American market. The automotive sector should capture the attention of investors, after some data on this industry have shown that the strong demand observed in Germany contributed to the sales increase in September, so it was registered the 25th consecutive month of growth in the European Union. Also noteworthy was the retail sector, after Carrefour have reported a a sales pace increase in the 3rd quarter, reflecting improved performance in Southern Europe, the behavior in France and a certain resilience demonstrated by the company in Brazil, despite the economy of this country is in a more delicate situation. Nestle already reported sales for the first nine months of the year behind schedule and reduced its forecast for organic growth this year of 5% to 4.50%. In the mining sector, Rio Tinto reported a 17% increase in iron ore orders and added that should meet the target for the end of year 340 million tons.
The US market reversed the downward trend of the previous two days, ending yesterday’s session up. The Dow Jones and S & P500 closed at the highest levels since mid-August. The market rise was based on the financial sector and in the utilities. The latter sector benefited from sectoral rotation performed by some fund managers, which increased its exposure to utilities at the expense of the mining sector, penalized by the relative weakness of commodities. The financial sector was one of the best performers of the session despite the presented results were not very interesting. In terms of economic indicators, the number of weekly applications for unemployment benefits fell by 7,000 to 255,000, the lowest level since 1973 and lower than estimates of 270,000. On the other hand, the consumer price index fell in September 0.20 %, to stand in line with estimates. However, if we exclude the most volatile goods such as food and energy, the CPI recorded an increase. Already the manufacturing activity index of the Philadelphia Fed remained negative in October for the second consecutive month. This indicator rose from -6.0 in September to -4.50 in October, compared to -1.0 expected. Today General Electric the results will be known. At a time when investors are concerned by the state of the world economy, the quarterly accounts of GE assume additional importance. This conglomerate, for the diversity of its activities (and its geographic exposure), is a reliable sample of the global economy, so it is quite accompanied by investors. In recent quarters GE has continued with the aim of focusing mainly on industrial activity, having sold a few months ago its financial unit.
The good performance of Wall Street drove Asian stocks, which ended the session with gains near 1%.