Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, European indexes traded without major fluctuations. Yesterday’s session closed with substantial gains before the good news from Greece. The optimism was also fueled by the publication of the IFO, which rose to 107.7 in May, from 106.7 in April, thus exceeding the estimate of economists who predicted a marginal improvement to 106.8. In a statement, the president of the IFO, Clemens Fuest, assessed that “the German economy is growing at a robust pace”. On the other hand, the rally played by oil prices supported the share price of the respective businesses. Also the banks maintained the positive trend that has characterized the last sessions. Highlighting the gains from Deutsche Bank, Santander, Royal Bank of Scotland. In opposition, among others, was Marks & Spencer which reacted negatively (with a loss of more than 10%) to the fact that in the presentation of its strategic plan have said that the restructuring that they will undertake should penalize short-term profits. The company reported an annual profit before tax of 684 GBP (3.50% over the previous year), surpassing the 674 M.GBP. Bayer continued to be penalized by the news of the takeover bid for Monsanto. Reuters reports that yesterday in the evening the German pharmaceutical reiterated that the 122 USD per share offered to shareholders of Monsanto are the right amount, after Monsanto has refused its offer of 62 000 M.USD.
Yesterday US market closed higher, thereby extending the gains made in the previous session, supported by the statements of a member of the Fed, the positive indications of the real estate market, the rise of European indices and the buying that have flocked to the technology sector. The financial sector benefited from rising expectations that the Fed raise key interest rates next month. But the energy sector was favored by the rise in oil prices, triggered by the report submitted by an association of this sector that showed a drop in oil inventories. At the macroeconomic level, the trade deficit reached in April 57,500 M.USD, down from 60,000 M.USD estimated.