Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, European indexes traded slightly lower. Macroeconomic and business agenda for the day is practically empty, and the expectations are concentrated mainly in the Conference to be held in Jackson Hole at the end of the week. However, the energy sector remains in the spotlight. On Monday, oil prices fell, with the Reuters agency noting that some analysts doubt that the talks between the main producers of this raw material will culminate in a freeze on production, so the oil price should fall back to one level lower than 50 USD a barrel, after the strong rally (over 20%) recorded during the month of August. Is held today in Italy a meeting between the Italian prime minister, German Chancellor and French President in order to discuss the problems of terrorism and immigration and prepare the next key steps for the future of the European Union.
Last Friday, the US stock market ended lower, with investors showing some concern regarding the Fed decision at the next meeting. Still, the Nasdaq managed to end the eighth consecutive week of gains since April 2010. The session was marked by the traditional weak liquidity and the absence of significant catalysts or business nature, as well as macroeconomic, so there has been another day without any sign to help investors to infer about the actions of the Central Bank. The minutes of the last meeting of the Fed revealed on Wednesday, did not help much in this regard. Moreover, in recent days, investors have also weighed their decisions based on the words of some members of this body as well as the crude oil price behavior. On Thursday, the President of the Federal Reserve of San Francisco, John Williams, joined the group of members that supports a rise in interest rates in the coming months, stating that if the Fed wait too long, such an attitude can entail costs for the economy. In this context, attention is turning to the statements of Janet Yellen in Jackson Hole Conference scheduled for August 26, Friday, the day will be published important data for the country’s economy, such as GDP and the confidence index of consumers. Concerning the business level, utilities and telecommunications industry, led losses, as they are considered more defensive sectors and more sensitive to the prospect of higher interest rates, at a time when the current low level of interest rates provides the escape for assets with higher returns. Rather, technology companies had a overperformance, showing a more positive outlook for the markets, as they are considered investments with greater risk. Shares of Applied Materials rose more than 7% after the semiconductor manufacturer has informed that its orders reached a record in Q3. On the other hand, Wal-Mart negatively pressured the market, with a drop of 2% in a week they made known their quarterly accounts. Gap rose 3.90% despite the retailer has reported a fall in the 2nd quarter sales. Deere, manufacturer of equipment for agriculture, registered the biggest gain since March 2009 (13%), after having raised its annual profit forecast, following an unexpected increase in earnings per share.
Asian markets ended in different directions. In Tokyo, the Nikkei index recorded a slight gain after the yen have shown a slight depreciation against the dollar. Investors await with some expectation the comments of the Governor of the Central Bank of Japan, Haruhiko Kuroda. Expectations point to keep the comments already advanced by a newspaper for a cutting in interest rates by the Central Bank of the country.