Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, European shares traded lower, because of Wall Street weakness. Initially, investors will react to the results of some companies. Telefonica reported a net income for the 1st quarter of 3376 M €, short of forecasts, the pharmaceutical Astrazeneca presented quarterly results in line with estimates, while ENI and Royal Bank of Scotland reported losses greater than the estimated. BASF reported a higher than expected EBIT.
US markets closed with losses of more than 1%. Initially, the US indices suffered the pressure caused by yesterday’s decision by the Bank of Japan. Later, embarked on a recovery, but due to the weakness in the technology sector, the indices declined. In the first calculation relative to GDP in the 1st quarter, the Commerce Department showed that the US economy grew only to 0.50%, less than the 0.60% estimated. The weakness became broad based across the various areas of the economy, with the exception of real estate. The weakest points of the economy were the investment (which fell 8.60%, mainly due to the divestitures of oil and mining sectors) and exports which continued to be affected by the strength of the dollar. Domestic consumption, which accounts for almost 70% of the economy, increased 1.90%, but beating forecasts of 1.70%. Today, the spotlight will fall on the results of ExxonMobil and Chevron, two symbols of the American oil industry. More relevant than the results themselves are the prospects that companies will give on the evolution of oil. At the macroeconomic level, to highlight the publication of inflation associated with the consumption of households, the preferred indicator by the Fed. While maintaining that inflation will reach 2%, the Fed does not see definite signs that the recent rise in price levels is sustained.
Asian indexes closed lower, given the weakness of Wall Street. The Japanese market was closed, having celebrated the Day of Showa, dedicated to a reflection on the reign of Emperor Hirohito (1926-1989).