Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, European shares traded with modest gains. The banking sector will be the major protagonist of this week with several European banks to report their quarterly accounts. Despite the strong recovery since mid-February, this sector has been under-performing against the DJStoxx50. Overall, European banks have been penalized by increased regulation, the low level of interest rates, as well as the turmoil in the financial markets which decreased revenues from trading.
US markets closed lower, although they managed to recover part of the losses recorded in the middle of the session. The day was marked by macroeconomic and microeconomic factors. At the macroeconomic level, the data on American families confirmed the evidence provided by the disclosure of GDP. In March, household spending (excluding volatile goods) increased by 0.10%, and the growth relative to February was revised up from 0.10% to 0.20%. In turn, household income increased 0.40%. The modest growth of household expenditure is reflected in a moderate increase in inflation. The growth of prices of goods consumed by US households (excluding the most volatile goods again) increased in March 1.60% in annual terms. The Chicago PMI index, which measures manufacturing activity in the region, fell more than estimated in April, from 53.6 to 50.4, failing to meet forecasts of 53.10. The confidence index of consumers, as measured by the University of Michigan, came down from 91.0 to 89.0, compared to 90.0 estimated. In terms of results, Amazon appreciated 9.57%, thus preventing the correction of the Nasdaq to reach higher proportions. Chevron reported a higher than estimated loss but revenues surprised by the positive. Exxon Mobil announced earnings and revenue that exceeded forecasts. Both stocks ended with contained gains. It is important to note that these are the two largest oil companies in the country and the ones which have managed to overcome the sector’s difficulties due to the better financial situation that they have over their smaller competitors and the fact that they offset the reduced price of oil with an expansion in refining margins.
Asian indexes closed lower, highlighting again the Nikkei. After the Friday holiday, Japanese stocks suffered heavy losses, justified by the continued strength of the yen against the dollar. Shanghai and Hong Kong exchanges were closed.