Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
Last Friday, European stock indexes ended without major fluctuations in a session dominated by the banking sector. The Justice Department has fined 7200 M.USD (6300 M. €) for Deutsche Bank for its conduct in the sale of mortgage-indexed assets before the financial crisis, a preliminary agreement that needs to be made official. According to the bank’s accounts published in September, the bank had a provision for legal costs of about 5500 M. €, which does not only involve this case. Analysts estimated that Deutsche Bank would pay a fine between 2000 M.USD and 5000 M.USD. In turn, Credit Suisse will pay a fine of 5300 M.USD to the US authorities in a similar lawsuit. Following the failure to recapitalize Monte dei Paschi di Siena, the Italian Treasury was obliged to intervene on Monte dei Paschi di Siena. In this way, the bank’s shares and bonds were suspended.
The American markets traded also without major fluctuations, with reduced volume. The Commerce Department reported that the sale of new homes increased 5.20% in November, reaching 592 thousand units (annualized number). After a few weaker readings, this indicator is poised to reach the highest annual growth since 2007. Another variable that demonstrates the current positive sentiment of Americans is the fact that consumer confidence has hit the highs of the last 11 years in December.