Stock Markets – Daily Note – 24/Jan

Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:

In pre-opening, European markets were trading higher, with investors waiting for macro and micro-economic events. On the business side, some companies presented their results, including SAP and Philips. In macroeconomic terms, in addition to the scheduled indicators (PMI indices in the Euro Zone), the two events marked for today have more political contours, but they will certainly have an indirect impact on the financial markets. In the United Kingdom, the British Supreme Court will rule on the December decision of a London court which ruled that the government could not activate Article 50 and ask to leave the European Union without first consulting Parliament. At the same time, and given the relevance of the Italian market (and especially of the country’s banking operations), investors also await the position of the Italian Constitutional Court on the electoral law Italicum, which was the focus of the constitutional referendum held on 4th December .

The US market closed lower, although indexes recovered from session lows. Pressuring the stock performance was the uncertainty associated with the details that are gradually being presented regarding the policies of the new President, Donald Trump, and one of the issues that has conditioned more the sentiment of investors has been the protectionist tone of their interventions , Especially in the inaugural address. Still, a temporary rebound of the three major indices was positive yesterday, after Donald Trump made reference to another promise of his campaign, deregulation, which was one of the rally supporters that markets posted after the day Of the elections. The US President said yesterday that his administration could reduce regulation by 75% or “maybe more.” It should be noted that the rally that was registered since election day in November lost some strength last month despite the fact that the S & P 500 ended Thursday’s session with the highest valuation on Election Day until the day of the inauguration Since Bill Clinton won his second term in 1996. Yesterday, it was McDonald’s turn to present his quarterly accounts. The well-known company exceeded estimates in terms of revenue as well as in terms of output. EPS reached USD 1.44, above the estimated USD 1.41, while revenues stood at USD 6030, compared to an estimated USD 5990.

Asian markets have also mirrored the uncertainty surrounding the US President’s policies, including the announcement of the withdrawal of the free trade agreement under the transpacific partnership, better known as TPP, which Pacific Ocean. This measure, according to Donald Trump, will protect American workers.

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