Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, the European markets traded slightly higher. Attention today will mostly focus on the business results presented. Novartis reported a 2% drop in last-fiscal operating income, although net income rose 1%. Regarding the banking sector, Santander reported that its net profit stood at 1600 M. € in the fourth quarter, up from 25 M. € recorded last year. The oil sector should also be highlighted, following President Donald Trump’s statements on new oil pipelines in the country. At the same time, and more macroeconomically, Reuters reported that a member of the ECB, Sabine Lautenschlaeger, said that the Central Bank could begin “briefly” to plan for the easing of monetary stimulus as a result of an improvement in the macroeconomic environment. Libra’s behavior will be another topic to monitor following yesterday’s decision by the Supreme Court in the UK.
The US market closed higher, with the S&P500 hiting a new all-time high during the session and the Dow Jones resumed its path to the psychological barrier of 20,000 points. Investors have been attentive and reacted to the business results disclosed, but above all to the details that are being known about the policies of the Administration of Donald Trump, which have been cause for uncertainty in the market, fundamentally those that refer to cuts Taxes, deregulation and public expenditure. The President of the United States yesterday encouraged executives of General Motors, Ford, Fiat Chrysler to increase production in the country and boost American employment. The shares of these companies closed with gains of 1%, 2.4% and 6%, respectively. On the other hand, it promised to cut regulations and taxes to make the US operation more attractive to companies and signed the necessary approvals for the advancement of two pipelines, Keystone XL and Dakota Access, so TransCanada and Energy Transfer, companies Involved in these projects, increased 2.89% and 4.04%. In the commodities market, copper and aluminum prices rose the most since March 2016, so commodity producers ultimately led the S&P500 gains. Relatively to Earnings Season, five companies belonging to the Dow Jones index reported their accounts. DuPont, 3M and Johnson & Johnson outperformed earnings estimates but revenues fell short of forecasts. In turn, Verizon’s telco profit was lower than the estimates, while its revenues surpassed forecasts. Travelers exceeded earnings and revenue forecasts. On the macroeconomic front, sales of second-hand homes declined 2.80% in December from an expected 1.80% drop, suggesting that lower supply, higher prices and higher interest rates could condition the market in 2017. The trend Of the S&P should dictate the course of the European markets and thus the period of greater volatility in the US should quickly spread to Europe, giving rise to a pattern similar to that of Wall Street.
Asian markets ended up higher, in part because of positive sentiment at yesterday’s session. The Japanese market rose more than 1% on the day economic indicators were published on the country’s economy. Exports increased in December for the first time in 15 months, or 5.40% over the same period last year, a growth well above the expected 1.20%.