Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening session, European indexes traded lower after losses on Wall Street yesterday. In the London market, the FTSE index hit a new all-time high, with some analysts reporting strong expectation of the Trump presidency’s impact on rising consumption. Meanwhile, in addition to the banking sector, the oil sector has attracted attention, as the date of implementation of the agreement between members and non-OPEC members is approaching. This morning, the price of crude fell slightly, after the American Petroleum Institute had revealed inventories of this raw material higher than expected.
The US market ended lower in yesterday’s session, making it more unlikely for the Dow Jones to reach the 20,000 barrier in the short term. The index fell 0.56 percent to 19833 and the S & P500 index fell 0.84 percent, with the financial sector and commodity producers falling more than 1 percent. Nevertheless, the trend that usually confirms this last week of the year has returned: a small volume of trading and few catalysts that favor a greater intensity of the stock market, after a rally of several weeks that led the main indexes to new Maximum. In terms of economic indicators, today’s known data on the real estate market did not materialize prospects for an increase in home sales with the Trump presidency. The number of real estate purchase and sale contracts during the month of November was penalized by the higher mortgage interest rates and by the lower available homes available, having decreased by 2.50% over the previous month. Economists estimated an increase of 0.40%. The price of oil reached the maximum of the last 18 months at 54.06 USD, given the encouraging prospects for the agreement between the member and non-OPEC members regarding the cut of production to be implemented starting next Sunday, the 1st day of the Year 2017. Remember that last Monday, the US market was closed (Christmas Day Holiday) and will close again next Monday, January 2, to commemorate the New Year. Last Friday, the Dow Jones index for the first time in two years saw a series of seven weeks on positive territory, only 70 points from the psychological barrier of 20,000.
The Japanese market closed with a devaluation of over 1%, penalized by the appreciation of the Yen and the sharp fall in Toshiba shares. Shares of this company fell about 17 percent after rating agencies Moody’s and S & P global Ratings lowered their debt rating. Recall that this reduction comes after the news about the large losses that the Japanese company is expected to announce at the nuclear power unit it owns in the US. On the other hand, the appreciation of the Yen has negatively influenced the price of exporting companies.