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 contained losses. The beginning of this week should be particularly intense because beyond corporate news, European investors are faced up with the electoral campaign in the United States and the difficulty of OPEC in achieving a consensus on the reduction of production.
US markets closed lower, responding negatively to the announcement that the FBI found new emails relating to matters of state sent and received in the personal email address of Hillary Clinton. Of all the accusations made by Donald Trump to Hillary Clinton, the issue of e-mails was one in which the candidate was more vulnerable and the most sensitive to public opinion. Recent surveys show a strong increase of uncertainty in the elections next week (day 8). In terms of economic indicators, the US GDP grew 2.90% in the 3rd quarter, an increase higher than the estimates of 2.60%. This variation relaunches the hope of investors in relation to an acceleration of the economy in the 2nd half, after a uninspired year start (GDP grew 0.80% in the 1st quarter and 1.40% in the 2nd quarter). Consumer spending, which is the main engine of the economy, grew by only 2.10% in the quarter, less than the 4.10% observed in the 2nd quarter and 2.60% estimated by economists. In terms of the earnings season, the highlight was the results of two major oil companies: Chevron and Exxon Mobil. The first company reached the first profit last year. EPS stood at the 0.68 USD, well above the 0.37 USD estimated but also well below the 1.09 USD recorded last year. Exxon Mobil reported an EPS of 0.63 USD (1.01 USD in the same quarter of 2015), against the forecast of 0.59 USD. However, the company warned investors it might have to reduce the book value of various reserves of oil and gas owned. Today, the economic calendar is much fuller. Among the various indicators figure the Fed’s preferred measure of home inflation.
Asian markets closed with no major fluctuations in a day that begins the meeting of the Bank of Japan, which will continue until tomorrow.