Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, European indexes presented some losses. Today will be a particularly interesting day to observe the behavior of European markets. The session will be marked by the aftermath of yesterday’s meeting of the ECB. While investors’ expectations were not high, there was a secret hope that Mario Draghi would announce something new, perhaps an intensification of the asset purchase program. However, Mario Draghi has confined itself to stating that the current program adjusts to the economic reality of the euro zone and that was not discussed at the meeting any changes. The Italian and Spanish markets were more resilient to the disappointment caused by Mario Draghi. Today this over-performance may be put to the test. Today at 8:00 am, will meet the finance ministers of the Euro zone as well as the governors of the central banks. Possible topics of this meeting will be the situation of the banking system, public finances of some countries and the effects of Brexit.
US markets closed with contained losses. The words of Mario Draghi coupled with the uncertainty that exists in the short-term outlook of the American indices conditioned the New York session. Perhaps devaluations could have been more pronounced if the oil had not reached 4.66% gains. Apart from the positive momentum that has been present in recent days, the crude was driven by unexpected drop of 14.5 million barrels of oil in US energy reserves. This was the biggest weekly drop since January 1999. At the macroeconomic level, the weekly claims for unemployment benefits reached the minimum of the last seven years, reaching 259,000 last week. This number may motivate a more prudent Fed to increase interest rates. At the enterprise level, the great theme of the day was the market reaction to the new iPhone 7 and AppleWatch2. Shares of Apple fell 2.66% despite the first criticisms of analysts have been positive. Today, the session will be dominated by two themes. The first is the evolution of oil. The second theme of the day will be the intervention of several members of the Fed. Although the vast majority of investors have the conviction that the Central Bank will not raise interest rates in September, financial markets continue to look for evidence to support this assumption. For today, are scheduled the interventions of the Governor of the of the Boston Fed, the Dallas Fed Governor and member of the executive committee of the Fed Daniel Tarullo.
The major Asian indices closed without major fluctuations, despite the publication of inflation in China and North Korea announced that it held its 5th nuclear test. In August, inflation stood at 1.30%, well below the 1.70% advance by economists and 1.80% in July. Despite some positive signs on the Chinese economy continue to hover several risks as what was published today and as the fall in foreign exchange reserves, which was released on Wednesday. Regarding the nuclear test announced by North Korea, its impact was more diplomatic than financial, although the Seoul stock negotiate with losses of about 1%.