Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening European markets traded higher. Wall Street recovery and rising oil in the New York session shall give an initial boost to European equities. This context should favor the oil companies’ stocks and reflexively mining and industrial. The oil sector is expected to benefit further from the approval by the fund Aberdeen Asset Management’s acquisition of BG by Shell. The fund is a shareholder of both companies and a key element for this operation. In Spain, investors will continue to monitor the political negotiations which aim to solve the complex situation caused by the vote of last Sunday. Today is the last session before Christmas, a relevant day to the extent that some markets today are closed and others will have a reduced session.
US markets closed up, because of the oil recovery and some specific news from companies. The final part of the day was marked by the rumor that the state of alert in New York City would be increased as a result of a terrorist threat but this rumor was later denied by the police of the city. Caterpillar appreciated by 4.83% in the session after solving a dispute with another company and paid minor damages against to what was alleged by analysts. The rise of this stocks (whose activity is very correlated with the cycles of the world economy) boosted the titles of other cyclical companies. The session was also marked by some economic indicators but it had little influence on the trend of the stock market indices. The Commerce Department revealed that US GDP grew 2% in the 3rd quarter, slightly less than the 2.10% previously calculated. Private consumption, which is the main item of GDP, increased by 3% as previously estimated. The home sales decreased 10.50% in November to 4.76 million units (annualized number), falling short of the 5.4 million planned units. According to the Association of Estate Agents this drop was due to the introduction of new regulations in the bureaucratic practices regarding the acquisition of properties that inhibit the realization of several businesses. In addition, the sharp rise in property prices in some states (such as New York and California) has demoted many buyers who prefer to rent. Although these two nuances, the housing market is still in an expansion phase. Today will be published data on families, which represent the largest share of private consumption, which in turn is the main item of GDP. In addition will be published inflation associated with the consumption, which is the preferred by the Fed. Despite the Central Bank increased interest rates and to show confidence in the long term in relation to the evolution of inflation, the price level still remains distant from the desired 2%. The publication of US oil reserves (15h30) will also influence the equity markets, given its correlation with oil price in recent weeks. Economists estimate an increase of 1.21 million barrels of reserves. Tomorrow begins the period that corresponds to the so-called Santa Claus rally. This period includes the last five sessions of the year and the first two of the new year. Over the past 29 years, the S & P had a positive performance 26 times, with an average gain of 1.74%.
Asian markets closed higher, reflecting the good performance of Wall Street and from the words of a Beijing government official who argued that monetary policy will have to be more flexible and reinforced the need of a stronger fiscal policy. The Japanese market was closed in the Day of the Emperor.