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 significant variations. Today’s session should be divided into two parts. At the initial stage, investors will react to the various results that were published this morning. These include the Volkswagen results that will be disclosed at the opening of market. More relevant will be the press conference that the new CEO Mathias Muller will perform at 11h30. The company Heineken posted a strong increase in sales in America and Europe, while competitor SABMiller extended the deadline for AB InBev present the formalization of its tender offer. The mining company Antofagasta again cut copper production this year, after the 3rd quarter production has remained unchanged from the previous quarter. The European technology sector should also reflect the results of Apple, which reported results and revenues for the 4th quarter above expectations. Profit increased by 31% to 1.96 USD per share (vs. estimated 1.88 USD), driven by strong demand for iPhones in China. The company sold 48.04 million iPhones during this period, up from 39.27 million sold in the same period last year. For the current quarter, Apple foresees revenues of 75500 M.USD, compared to analyst forecasts of 77140 M.USD. The shares rose 0.61% in the aftermarket. Several European companies, such as British ARM, are important Apple’s suppliers. The second part of the day will be characterized by expectations of investors regarding the Fed meeting today.
The US market closed slightly lower, in face of the fall in oil prices and as investors digest the economic data released and the disclosed business results. However, investors remained expectant concerning the meeting of the Fed which ends today. As regards the real estate market, housing prices in 20 US cities increased 5.10% in August compared to the previous year, in line with the estimated pace. Orders for durable goods fell in September, before the slowdown in manufacturing activity. On the other hand, the indicator of consumer confidence, as measured by the Conference Board was revised down from 102.6 in September to 97.6 in October. The economists estimated that it had set in 102.4. The meeting of the Fed will be the main event of the day and perhaps of the week. Economists do not anticipate any increase in the reference rate. Attention will be focused on meeting announcement and publication of the minutes a few weeks later. In relation to the Fed executive committee, opinions are considerably divided. Regional Governors, 8 out of 12 are in favor of an increase in interest rates in December. From the other members, Janet Yellen also advocates an increase in December as well as its Vice-President, although it has shown some reservations. Two governors advocate the maintenance of interest rates until 2016. Thus, Fed’s emerges a picture something divided by Janet Yellen, whom to keep the tradition of decisions based on consensus, will have to develop in the coming weeks a conciliator role within the Executive Committee with a basis to raise interest rates later in the year.
Asian markets ended in different directions. The Japanese market ended up, favored by the results reported by some companies, although the attentions are mainly aimed to the meeting of the Fed.