Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, European indexes were negotiating without relevant variations. Initially, investors will react to the results presented before the opening. SAP said that the recurring operating income for the 3rd quarter increased 1% to 1,640 M €, slightly below estimates (1,690 M €). However, the company raised the lower limit of the forecast range for the operating result in 2016, anticipating a 4th strong quarter. In turn, Daimler reported a quarterly net profit of 2,595 M €, compared to 2,385 M € recorded last year, while the EBIDA rose 10% to 4,000 M € and revenues increased 4% to 38,600 M €. Favoring these results was the strong growth in the Mercedes-Benz Cars, at the Mercedes-Benz Vans and Daimler Financial Services.
US shares closed with modest losses, with the weakness of the oil and telecommunications sectors compensated by other sectors. Oil suffered a sharp correction (-2.70%) after the day before reaching the maximum of the year. The expectations of US interest rates influences the price of the dollar and consequently the oil price. Usually between the US currency and oil prices there is a negative correlation. In the macroeconomic field, and in relation to real estate, used home sales reached 5.47 million in September, representing an increase of 3.20% compared to 5.30 million revised in August and an increase of 0.60% over the same month of 2015. Weekly applications for unemployment benefits amounted to 260,000, 13,000 more than last week but this increase was mainly due to the interruption of economic activity in the regions affected by hurricane Matthew. The Conference Board reported today that the leading indicators of the economy recorded a 0.20% increase in September, thus reversing the decline of 0.20% in August.
Asian markets closed in a slight downward. The appreciation of the dollar pressed the price of oil and its sector. However, the Japanese market was favored by the downward trend of the yen against the dollar, a behavior that favors the major exporting companies.