Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, European stocks traded without a defined trend. The session should be similar to yesterday. Volatility and volume should be below average not only because of the scarcity of news and economic indicators but also because the American session is short. Perhaps one of the few topics of interest of the day will be the behavior of Italian banks. This theme will not only dominate today’s session but most likely will be the highlight of next week, considering the holding of the constitutional referendum on December 4. Yesterday, in a meeting of shareholders, Monte dei Paschi di Siena approved the realization of a capital increase up to 5 Billion € and officialized the operation of the conversion of bonds into shares. These two transactions constitute the sine qua non condition for the disposal (with losses) of 27 Billion € of impaired loans. The capital increase starts on December 7, three days after the referendum. Thus, the outcome of the vote may condition the greater or lesser interest of foreign investors for this operation. Monte dei Paschi di Siena is the third largest Italian bank and the one that is entering a more delicate phase.
American markets were closed for Thanksgiving. Today, the session will be shorter, ending at 18:00 GMT. Today is called Black Friday, which marks the official start of the shopping season, which coincides with the most profitable period of retail chains. In recent years, with the expansion of online sales the importance of Black Friday has been losing some importance for Cyber Monday. Purchases during this period are monitored almost daily by analysts (with higher incidence at weekends, when consumers are more affluent to the stores) and are well publicized in the financial media, and thus condition the performance of stock markets . For the shopping season as a whole, sales are expected to grow 3.60% over the same period in 2015. At the statistical level, since 1928, the S & P has appreciated 68% of Black Friday sessions, presenting a little average rise Lower than 0.27%.
Asian markets closed with modest gains, ending the week on positive territory. However, the news regarding the Japanese economy was not positive. In October inflation in Japan (minus prices of the most volatile goods) fell by 0.40%, being the eighth consecutive month in which the price level declined. This negative series has increased the pressure on the Abe Government to introduce new measures to stimulate the economy, this time of a fiscal nature. The various monetary stimuli have contributed to lower interest rates and increase liquidity in the economy but these favorable conditions have failed to significantly stimulate investment and consumption, which translates into very little or even negative inflation.