Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
The futures of the major European indices point to a negative opening. Yesterday, the main indexes closed higher, with investors monitoring developments regarding the political situation in Italy and the OPEC meeting. A session where the expectation of an agreement of a cut in production prevailed, thereby raising the price of this raw material, above 8%, the best daily value since April. According to Bloomberg, the agreement provides for a cut in production of 1.2 million barrels per day for a daily production of 32.5 million barrels, the limit proposed by Algeria for daily production, against Current 33.6 million. The aim is to sustain prices, which have fallen to less than half since 2014 due to oversupply. In this context, analysts at Goldman Sachs and Barclays have commented that if the deal is reached, oil prices should quickly exceed $ 50 a barrel. The banking sector did present contained fluctuations, and during this month it appreciated around 3%, after the rise of 8% in October. Even so, since the beginning of the year the devaluation of this sector is around 14%. In London, the Royal Bank of Scotland fell 4 % after failing the Bank of England stress tests and been advised to raise its capital buffers. The British bank has reviewed the capital plan. Barclays and Standard Chartered also traded lower after the results of those tests were released, although they have recovered to positive ground. In terms of macroeconomics, data from the manufacturing sector will be released today for Germany, France, the United Kingdom, the Euro Zone, which also show unemployment figures, and the US. In US will also be released applications for unemployment benefit, construction figures, and car sales.
On the last day of November, the US market was trading higher, favored by higher oil prices. However, attention was also focused on the economic indicators released. According to the ADP employment report, 216,000 jobs were created in November, up from 165,000 expected. On the other hand, household consumption grew by 0.30% in October (vs. 0.40% estimated), while Household income increased 0.60%, the best reading since April and in line with the estimates. Inflation associated with consumption stood at 1.40%, slightly below the expected 1.50% but higher than the 1.20% registered in the previous month. On the other hand, the Chicago PMI index reached 57.6 in November, well above the 50.6 observed in October and the expected 52.5. Regarding the real estate market, real estate purchase and sale contracts increased by 0.10% in October compared to the previous month, and against 1.50% in September. Investors are now waiting for the disclosure of the Fed’s Beige Book.