Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, European markets traded slightly lower. During today’s session, investors will be attentive to business results and published economic indicators, as well as developments regarding US President Donald Trump’s policies and measures, including the most recent issue related to immigration policy, Even because some major companies such as Google, Apple and Facebook have been critical of some of the new President’s initiatives.
Last Friday, the US market closed with different directions, although in weekly terms it showed a valuation of around 1%. The session was marked by the presentation of relevant economic indicators and the reaction to the presented results. Growth in the US economy slowed faster than expected in the fourth quarter of last year, as exports tumbled. However, more stable consumption and increased investment have suggested that the economy’s expansion is expected to continue. According to the Commerce Department’s first estimate, GDP for the fourth quarter of 2016 increased by 1.90% over the same period last year, compared to 3.50% in the third quarter and the expected 2.20%. Private consumption was in line with expectations, rising 2.50%, despite declining from the previous quarter, when it increased by 3%. GDP-related inflation stood at 2.10%, also in line with forecasts, but above the level recorded in the third quarter (1.40%). Durable goods orders declined by 0.40% in December, an improvement from the previous quarter (-4.50%), although economists expected a rise of 2.50%. If we exclude transport orders, this indicator increased by 0.50%, in line with the estimates. Regarding consumer sentiment, the index developed by the University of Michigan stood at 98.5, slightly above the expected 98.1. Regarding Earnings Season, Bloomberg reports that about one-third of the companies that make up the S & P 500 have already reported results, with 68% of them outpacing earnings estimates, thus confirming the positive character expected from this earnings season. An analysis by JP Morgan reports that the “recession in profits” will end in the third quarter of 2016. On Friday, the Dow Jones index closed down mainly due to the shares of Goldman Sachs and Chevron, which posted disappointing quarterly results. Alphabet fell more than 1 percent after profit fell short of forecasts, while Microsoft jumped 2.32 percent and Intel rose 1.15 percent, boosted by its outperformance. The energy sector also penalized the market by reflecting the drop in oil prices.
Many of the Asian markets are due to be closed this week, as the Chinese New Year (New Year Lunar), the Year of the Rooster, began on Saturday. Although China uses the Gregorian (global) calendar for most official and business events, the Chinese calendar is still used to determine the days of traditional festivals, such as New Year’s Day, celebration of some birthdays, as well as Use of agriculture (planting, harvesting, etc.) and to identify the 4 seasons. The festivities begin on the day before New Year’s Day and run until February 3 (the day the Chinese stock market reopens), celebrated in several countries in Southeast Asia where there is a significant Chinese population as Taiwan, Singapore, Thailand, Cambodia, Malaysia, among other countries, beyond, of course, China. Since the 1950s the Rooster years have recorded the worst average performances of the S & P500 when compared to the remaining animals of the Zodiac. In the last 50 years, there was an average devaluation of this index of 4.10%.