Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening European markets were trading with no significant variations. This week will be particularly intense, with the completion of the ECB meeting on Thursday and the publication of the employment report in the US the next day. These two events are preceded by the release of other economic indicators, in an environment marked by high geopolitical risk. This environment of uncertainty should result in greater volatility. However, given what happened in recent weeks, economic issues should overlap to the terrorist threat in Europe and geopolitical tension lived in Turkey and Syria. One big question is whether the majority of European investors has positioned itself in relation to the expected announcement of measures by the ECB. Since the attacks of Paris, the DAX has appreciated 6% and 4% the Eurostoxx 50. In the currency market, the Euro lost since that date 1.50% as investors anticipate a greater supply of Euros as a result of an even more expansionary policy of the ECB.
American indices closed without significant fluctuations and an exceptionally low level, not only because the session was shorter than usual, but also because many institutional investors have been absent from the market. The attention was focused on two sectors, the oil and the retailer. The first sector stepped back 0.72% during the session Friday, reacting to the fall of almost 3% of the oil prices, although the volume has been reduced. The reasons for this devaluation, in addition to the reduced volume, are linked to the sharp drop in Chinese equities, the strength of the dollar and some skepticism that some OPEC members have shown in the face of optimistic forecasts published on Friday by the cartel economists. The retail sector ended the session with contained losses, but the week accumulated 3.17% of gains, possibly in the hope that improving the economy signaled by various economic data will translate into higher consumption. The first data on the Christmas Sales, including those related to the Thanksgiving Day and Black Friday, point to a decline in consumption over the same period of 2014. According to ShopperTrak, sales in these two days was lower by almost 2% over the same period last year. The Retail Next estimates a similar drop in the order of 1.40%. Today, will be held on Cyber Monday, the day created by marketing firms to induce consumers through promotions and other attractions, to make your online Christmas shopping.
Asian markets ended without a common trend. The attention was focused mainly on the Chinese stock markets which last week had the worst performance since the sharp declines recorded during the month of August. After an early decline, Chinese shares managed to recover, however, the stocks of the main financial intermediaries extended last week losses due to ongoing investigations by the Chinese authorities.