Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, European markets should open higher, mainly because of the negative impact of the Fed statement in the price of the Euro. The first hour of trading should be particularly intense, with European investors to react to the statement from the reaction of the Fed and the various results that were published today before the opening. Santander increased by about 5% in net income for the 3rd quarter compared to the same period last year despite the depreciation of currencies in key markets such as Brazil have penalized the results. The income for the first nine months of the year came in line with expectations. On the other hand, the 2nd largest reinsurer in the world showed an unexpected increase in net income for the 3rd quarter compared to the previous year. Deutsche Bank already reported that the dividends for 2015 and 2016 will be diminished, and today the bank will present its strategy for the next two years. Barclays reported that the 3rd quarter profit fell 10% for 1430 M.GBP, down from 1650 M.GBP estimated. To point out the good results of Bayer and the record loss (7420 M.USD) of Shell.
The US market ended up, despite the release of the Fed meeting, which was the highlight of the day. The statement yesterday brought some important changes from the previous statement, keeping open the possibility of a rise in interest rates in December. A major difference is that it was removed the warning about the risks that the economic and financial instability in other areas of the globe could put the US economy. With regard to signs of slowing in the US economy over the past two months, the Fed acknowledged a slowdown in job creation but added that household consumption and investment have achieved more robust levels. At the conclusion of the statement, the central bank said it will assess the relevance of a rise in interest rates at the next meeting in September. In short, the statement yesterday challenges the prevailing perception in the financial markets (and especially monetary) that there will be no increase in interest rates, which had been one of the catalysts rally in stock market indices in October. To emphasize the valuation of oil and the positive reaction of investors to the results of Apple (+ 4.12%).