Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In pre-market, European shares traded slightly higher. Rising oil prices and the results of some companies may be one reason for increasing the buying pressure, after last week’s considerable losses in the markets. With closed Asian markets, oil prices should capture the attention, and the trading volume should be more restrained. In terms of consolidation movements, the French retailer Casino has agreed to sell a majority stake in the Thai operator of supermarket Big C Supercenter by 3,100 M €, excluding debt to the Thai TCC Group. On the other hand, the Air France KLM said passenger traffic grew 3.20% in January, while the traffic loads decreased 6.40%.
Last Friday, US markets closed with sharp losses, primarily the Nasdaq index, which was adversely affected by losses from companies like Amazon, Facebook and LinkedIn. The attention was also perched on the macroeconomic plan. The US economy created 151,000 jobs in January, a figure well below the 190,000 estimated by economists. Employment generation was negatively impacted by bad weather (which limited the activity in sectors such as construction) and the continuous decline in the oil industry investment, which has resulted in redundancies. Still, the unemployment rate fell from 5% to 4.90%. For its part, wages grew to 0.50% in monthly terms, putting the annual rate at 2.50%. This report can draw some conclusions. The first is that although job creation is lower than the previous month (260,000 and 280,000), it is natural for an economy with a low unemployment rate can maintain high levels of employment generation. The second is that the manufacturing sector, in turn, has created 29,000 jobs, contrary to the forecasts (which showed a loss of 2000 jobs) and some sectoral economic indicators such as the ISM, which have signaled some weakness, resulting from the global slowdown. The third and perhaps the most important for financial markets is that wage growth starts to gain greater dynamism, which period may generate some inflationary pressure, increasing the Fed leeway to raise interest rates. Still, money markets only ascribe a probability of only 14% to a rise in interest rates at its meeting in March and 33% in the June meeting.
Most Asian markets were closed. Today begins the Chinese New Year, the Year of the Monkey. This festival is celebrated in many countries of Southeast Asia where there is a significant Chinese population as Taiwan, Singapore, Thailand, Cambodia, Malaysia, among other countries, in addition, of course, China. During this period, the financial markets of these countries will be closed for a few days or even a full week in the case of Chinese stock markets.