Stock Markets – Daily Note – 27/Apr

Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:

In the pre-opening, European equities were trading without a definite trend. Initially, investors will react to the various results that were published before the opening. The technology sector should be conditioned by the disappointing results of Apple, which may penalize the stocks of their European suppliers. In the final part of the day the volume shall decrease due to the expectation surrounding the Fed meeting.

US markets closed without major fluctuations. The session was marked by the disparity in performance between the various sectors. While telecommunications and pharmaceutical sectors finished lower, the mining and oil sectors closed with gains, due to the appreciation of crude. Today’s meeting of the Fed will be the antechamber of the June meeting. Today’s meeting will not have press conference and shall not be published any revisions of macroeconomic projections by the Central Bank. Therefore, investors will scrutinize the details of the meeting announcement and from there formulate their expectations and probabilities for the June meeting. The June meeting is being held on 14 and 15, a week before the referendum on the United Kingdom staying in the European Union. Although the outcome of this referendum is uncertain, there is a consensus in the case of the British opt for leaving the EU the effects, at least in the short term, the financial markets would result in an exceptional rise in volatility and uncertainty. Therefore, before an event that has the potential to destabilize, at least in the short term, financial markets, some members of the Fed may defend a delaying in the rate hike for July.

Asian indices closed lower in a session marked by expectation for the meeting of the Fed today and the Bank of Japan tomorrow.

Advertisements