Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, the European indices did not show a definite trend. Despite a number of events such as the Italian referendum, uncertainties over the future Trump administration and recent attacks in Europe, European stock market volatility is well below average. The volatility associated with the options on the Eurostoxx50 is the lowest since July 2014, demonstrating some investors’ complacency regarding the current situation. Generally, periods of reduced volatility are associated with exaggerated investor optimism. Regarding today’s session, the media sector will continue to be encouraged by the dispute between France’s Vivendi and the Berlusconi family’s holding company in relation to media company Mediaset. Since the beginning of the month, Mediaset shares have appreciated by 99%. In addition to the media sector, investors will be aware of any news regarding the process of exchange of bonds for shares by Monte dei Paschi di Siena bondholders. Around 40 thousand small bondholders will be able to exchange until 13h00 from today almost 2100 M. € of bonds in shares of the bank. According to the Italian press, the bank expects to obtain almost 800 M. € in this operation.
The American markets closed again with some gains. The event that received the greatest media coverage was the Dow Jones’ approach to 20,000 points. This index came in during the session to hit the level of 19988. The volume was the smallest since the reduced session of Black Friday, demonstrating that the Christmas season begins to condition the trading on Wall Street. The fact that the Dow Jones is approaching for the first time of 20,000 points, a historical feat of essentially psychological nature, having no investment consequences. Yesterday’s session was marked by a shortage of news and lack of macroeconomic data. At the microeconomic level, it should be noted that the FedEX carrier reported an EPS of 2.80 USD and revenues of 14930 M.USD. Analysts had anticipated EPS of 2.90 USD and revenues of 14900 M.USD. The company kept the targets unchanged for 2017. The carrier’s shares fell about 3%. Today, a session with a reduced volume should be attended, and so, the lack of liquidity could generate some more pronounced movements. The Dow Jones test at 20,000 points will be the main theme of the day. Also to be added that the US oil reserves will be published at 3.30 pm.
Asian markets closed with contained fluctuatuions, with the exception of Chinese and Hong Kong stock exchanges. These markets had been underperformance in previous sessions and it is not excluded that some specialized funds in Asia have taken advantage of recent declines to increase their exposure to the Chinese economy.