Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In pre-market, European shares presented modest fluctuations. However, considering the recent correction in oil and the effect of the other commodities, it is expected that the mining and oil present an underperformance. The first hour of trading will also be influenced by several results which were reported before the opening. These results assume a secondary character and its impact shall be limited to the stocks of their respective companies. So far, about 58% of the DJ Stoxx 600 components have reported their quarterly accounts. Although a slight majority have managed to surpass analysts’ forecasts in terms of profits, with respect to revenues only a minority has been able to exceed forecasts.
US markets closed with losses of more than 1%. The reasons for this fall are essentially two. A technique and is linked to the S & P’s inability to break the resistance of 1940/1950, which led many short-term investors to close positions for profit taking with the gains achieved in the previous week. The second reason was related to the oil drop. Yesterday, at a conference in Houston, the Arabian Minister of Petroleum ruled out any prospect of a reduction in production by OPEC. With the freezing of current production levels, Saudi Arabia expects a decline in crude stocks. These statements had a negative impact on the price of crude, which in New York, fell 4.50%. In December, home sales increased 0.40% from the previous month, reaching the 5.47 million units (annualized number), which is the second highest level since the 2008/2009 crisis. Economists estimated a decrease to 5.32 million homes. The median price of homes rose 8.20% year on year to 213 800 USD. House prices, if measured by the S & P / Shiller rose 5.70%. These data on the housing market, in line with other indicators such as retail sales and job creation, describe that US domestic economy remains dynamic, while more exposed to the outside activity has slowed. On the other hand, consumer confidence measured by the Conference Board decreased to a minimum of seven months. The confidence index declined from 97.8 revised to 92.2. Economists estimated that this indicator had set in 96.9. In business terms, the Home Depot surprised the market by presenting quarterly results above estimates. Sales increased 10% in the last quarter and earnings per share reached 1.17 USD, above the forecast of 1.10 USD . After the closing, Stanley Fischer from the Fed, said it is still too early to measure the impact of the turbulence in the equity markets on the real economy, so it is uncertain to know what will be the decision of the Central Bank at the March meeting. Today three members of the Fed shall participate in events.
Asian markets closed lower, given the weakness of the American and European markets. However, the Shanghai stock market’s rise helped to mitigate losses from other Asian equities.