Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, the European indexes were negotiating slightly lower, in face of the news coming from Italy. Yesterday, Monte dei Paschi di Siena reported that it will not be able to raise the 5000 M. € needed to strengthen capital and that was the sine qua non condition to dispose of about 28 000 M.€ in bad Loans. From the exchange of bonds for shares, 2440 M.€ were collected, an amount higher than estimated. However, it was the part concerning the issue of new shares that failed. State intervention seems to be the only solution.
US markets closed without significant changes. Despite all the financial media coverage of the Dow Jones’ 20,000 points, investors have been pausing in recent days, resulting in a period of consolidation. The year can be considered ended and can also be considered a good year. Faced with a series of unpredictable events, such as Brexit and Donald Trump’s victory, and how the year started (with a strong correction due to the devaluation of the Chinese currency) to achieve gains between 8% and 12%, 2016 was a particularly positive year. It is quite natural that investors choose to take a break, operating in the market just to position their portfolios for the new year. This explains the lack of reaction of the main indices to the rise of the oil sector, which in recent months has been one of the most influential sectors. Yesterday, after an initial rise, oil stocks reacted negatively to the release of oil reserves. Last week crude inventories increased 2.3 million barrels compared to a forecast of an increase of 2.5 million barrels. At the macroeconomic level, sales of used homes increased 0.70% in November, reaching 5.61 million units (annualized). This level is the highest since February 2007, when the real estate market was booming. Despite yesterday’s retreat, the Dow Jones 20,000 test will continue to merit the prominence of financial media today.
Asian markets closed without major fluctuations in a session marked by weak volumes and the scarcity of news or events.