Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In pre-opening, European markets were trading lower. The new US presidency will continue to be one of the central themes of the financial markets, particularly with regard to trade agreements with other countries. In fact, a conversation with British Prime Minister Theresa May is expected in the next few days to discuss future trade possibilities between the two countries. During this week the Earnings Season in Europe gains more intensity, since a greater number of companies will present their quarterly accounts. However, the energy sector may be influenced by the Reuters news that energy ministers from OPEC countries and other major oil producers have reported a positive start to the reduction of oil production. During the Asian session, the Dollar depreciated, with the Euro reaching the highest level of the last month. This afternoon will be disclosed the consumer confidence index for the Euro Zone during January, which is expected to recover from the previous -5.1 to -4.8. During 2016 this indicator showed a consistent improvement, rising from the long-term average at -12.7.
The US stock exchange reacted positively to the day of Donald J. Trump’s inauguration as the 45th US president, although on a weekly basis the Dow Jones and S&P500 indexes posted the second consecutive week of losses, given the uncertainty surrounding Lines and measures of its administration. Since the election day, the market has started a rally, supported by expectations regarding a policy of more public investment, lower tax burden and deregulation of some sectors. However, in the last month, the indexes have swung between gains and losses, with investors worried and looking for more details on those measures. In the last session of the week, the indices fell back from the highs reached during the day after the inaugural speech focused on some aspects highlighted during its campaign (such as the more protectionist tone), but also omitted more details about its legislative priorities . In sectoral terms, the gains covered most sectors, with raw material producers and telecoms companies being the best performers of the session. At the same time, the day was marked by investors’ reaction to published business results. IBM shares rose 2.20%, a day after the company reported higher-than-expected results, while General Electric posted a 2.20% loss, as it reported earnings per share adjusted in line with the estimates ($ 0.46), But revenues fell slightly short of forecasts (33080 M.USD vs. 33630 M.USD). The company reported that its profits were boosted by the renewable energy business, having reiterated its prospects for operating profit to 2017. Procter & Gamble exceeded forecasts in terms of revenues and profits, so the respective securities rose 3.25%. Earnings per share (excluding restructuring costs) reached 1.08 USD against 1.06 USD and revenues were 16850 USD , above the forecast 16770 USD. American Express fell 0.60%, after its quarterly results fell short of forecasts. However, the company’s credit card revenues hit analysts’ forecasts. Still in the business field, Bristol-Myers has fallen by 11%, after the drugmaker has informed it will not require an accelerated approval process for a combined treatment for lung cancer.
Asian markets traded without a well-defined direction, with investors still pondering the theme that dominated the last days, the takeover of Donald Trump. In Japan, appreciation of the Yen against the Dollar penalized export companies such as Toyota, Honda and Sony. Shares of Toshiba rose about 9 percent after several sources reported that the company is preparing to sell its semiconductor business.