Hello everyone! I would like to send you my best wishes for the holidays ahead.
First, I would like to thank you for reading this blog in 2016.
Wish You Happy Holidays!
Take a break, enjoy the winter holidays and spend some quality time with families and friends.
Wish you all a Merry Christmas and a Happy 2017!
Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, European indices traded without a definite trend. The European banking sector has shown remarkable resilience to a number of adverse factors. At the beginning of the week, uncertainty over the fine that Deutsche Bank will have to pay to the American authorities has reborn. Subsequently, the European Court ruled unfavorably with regard to Spanish banks. Yesterday, Monte dei Paschi reported that the recapitalization process was not successful and that a state solution seems inevitable. Since the beginning of the week, the DJStoxx Banks lost 1.32%. Very likely in past years, news such as this would cause quite a bit of damage both in price and investor sentiment in this sector. Most investors believe that bank shares will be the best-looking investment in Europe in 2017 and the sector is the one with the highest profit-making potential. Promoting this profound change have been the rise in European yields and the increased risk appetite triggered by the US elections, which among other factors has altered investors’ perceptions. This resilience will be tested today with the announcement that the Justice Department has imposed a fine of 7200 M.USD (6300 M. €) on Deutsche Bank for its conduct in the sale of mortgage-indexed assets before the financial crisis. In turn, Credit Suisse will pay a fine of 5300 M.USD to the US authorities in a similar lawsuit.
The American markets closed with contained losses, and the volume continued to suffer a decrease. The session was marked by the publication of macroeconomic data, which did not influence the trend of major indexes but provided investors and economists with useful information about the US economy. GDP growth relative to the third quarter of the year continues to be revised upwards. According to the Commerce Department, the US economy grew 3.50% in that period, surpassing the 3.20% calculated in November and the forecasts of 3.30%. Starts today the period that corresponds to the so-called Santa Claus Rally. This period includes the last five sessions of the year and the first two of the new year. Over the past 30 years, the S & P performed 26 times, with an average gain of 1.74%. However, given the gains made by Trump Rally, the odds of a strong Santa Claus Rally will probably be lower than in previous years.
Asian markets closed lower, with losses ranging from modest (Australia and Hong Kong) to severe (Shanghai). The Japanese market was closed, and the Day of Emperor Akihito (23 December 1933) was celebrated.