Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, the European markets negotiated in negative territory. Before the opening, results were presented by some companies, which may influence the performance of the respective stocks and sector. The political factors will be particularly important during the year 2017. During this year legislative elections will be held in the Netherlands (March), France (April-May) and Germany (September). In addition, the possibility of early elections in Italy (scheduled for March 2018) was not entirely removed. This intense calendar and the growth of populist movements generate uncertainty that is now beginning to mirror in the financial markets.
The US market ended slightly lower, with the “Trump Administration” and “Earnings Season” themes remaining on the investor agenda. In fact, after strong expectations of campaigning policies, notably tax cuts, deregulation and public spending on infrastructure, the focus has recently turned to topics such as immigration and international trade , Leading to a scenario of greater uncertainty over President Donald Trump’s future measures. This sentiment was visible yesterday in the rise in the price of gold (considered a safe haven) and in the fall of 10-year TO yields. The Dow Jones Index was penalized mostly by Home Depot shares, while the S & P500 index cut three consecutive days of gains, penalized by the energy sector that fell about 1 percent and led the losses. Regarding the Earnings Season, and at the time of its end, it is possible to state that most companies have beaten the estimates in terms of results, helping to reassure investors who are currently struggling with the uncertainty induced by the political conjuncture . In fact, with more than half of the S & P 500 companies with their results already published, Reuters reports that annual profit growth in the fourth quarter is estimated at 8% compared to 6.10% at the beginning of January, For the best quarter since the third quarter of 2014. Now, in the face of forecasts of employment and consumer sentiment, forecasts for first quarter earnings of 11.50% are forecast.
Asian stock markets closed lower, reflecting a feeling of increased risk aversion in international markets. Gold traded higher for the fifth consecutive session, approaching the high of the last three months. The Yen appreciated significantly against the main international currencies, undermining the performance of the main exporting companies