Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
Futures of major European indices point to a negative opening. Yesterday these same indices ended the session in positive territory, as investors react to recently released macroeconomic data that show some economic recovery. The behavior of Deutsche Bank was also a driver for this rise. The German stock exchange finished up about 1%, after having been closed the day before for a holiday celebration in the country. Shares of Deutsche Bank gained 0.90%. Meanwhile, the CEO of JP Morgan, Jamie Dimon, said that sees no reason for the German bank does not overcome these problems. HSBC already reported that despite operational difficulties, concerns about the solvency of Deutsche Bank are unreasonable and the bank is able to handle the pressure in the short term. However, HSBC reduced its target price, providing challenging conditions for the context of the banking sector, adding that Deutsche Bank may lose revenue due to lack of confidence in the short term. The British stock market led the gains on a day the British Pound has considerably devaluated, reaching the minimum of the last 31 years. It was exactly on the London market the shares of the largest company in the education sector, Pearson, registered a strong gain (6.11%), after Morgan Stanley has informed that it will be unlikely that the company provides an alert on the results, and expect a recovery in results in the 3rd quarter. In the automotive sector, BMW advanced 3.62%, favored by the Exane BNP Paribas that have raised their target price from 70 USD to 87 USD. Leading the gains in Europe was the Oil & Gas sector and the Consumer Services sector, with increases of 1.79% and 1.21%, respectively. In macroeconomic terms, today, it shall be disclosed the Markit Services PMI, of Europe and also of US, as well as retail sales in the eurozone. In addition, across the Atlantic, MBA Mortgage Applications and Factory Orders.
The US market alternated between gains and losses, closing down, as investors react to fears relating to Deutsche Bank and getting focused on the earnings season that starts next week.