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 in slightly lower, after the gains obtained in the previous days. Attention remains focused on business results as well as economic indicators published on both sides of the Atlantic. UBS reported a net quarterly result of 738 M.CHF, compared to 949 MCHF in the previous year, but well above the 339 M.GHF forecast by the analysts. Politics has been one of the topics to dominate the markets and today it remains on the agenda, with the meeting of the British Prime Minister Theresa May with the US President Donald Trump. Another meeting that will attract attention will be that of Angela Merkel and François Hollande in Berlin, with the aim of discussing the future of the European Union.
The US market closed with different directions after reaching new highs as investors reacted to the reported business results. So far, it has been mirrored in the accounts presented that companies have managed to achieve profit forecasts, but in terms of revenue the difficulty is higher. In fact, 30% of the companies belonging to the S&P500 have already reported their accounts, with 70% of them outpacing earnings forecasts and 56% exceeding estimates in terms of revenues. Ford reported quarterly results in line with the estimates and said prospects point to a lower profit in 2017. Caterpillar outperformed earnings estimates but its revenues fell short of forecasts. Dow Chemical showed a 14% increase in its quarterly revenues, driven by the takeover of Dow Corning. Johnson & Johnson fell 0.85% after agreeing to buy Switzerland’s Actelion for 30,000 M.USD, after stopping negotiations with the drug maker late last year. On the macroeconomic front, the number of weekly applications for unemployment benefits increased by 22,000 to 259,000, although this indicator continues to remain below 300,000 for 99 consecutive weeks, the longest series since 1970. On the housing market, Americans bought fewer new homes during December, but sales in 2016 peaked since 2007. Favoring the economy’s performance in the last quarter of the year was seen domestic demand, supported by all its components, such as consumption. In addition, orders for durable goods will also be known in December, which are estimated to have increased by 2.60% monthly, after 0.90% in November. In turn, consumer confidence is expected to have reached the highest since January 2015.
Most Asian markets ended up after data on inflation in Japan and investors tracking the performance of the US market. Prices in Japan declined in December at a slower pace, thus giving the economy a sign of progress: the consumer price index dropped by 0.20% over the same period in 2015, after the previous decline of 0.40%.