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 with slight gains. Regarding the Earnings Season, which has recently dominated the stock market scenario, the highlight today is the publication of the results of some of the most relevant financial institutions in Europe: Société Générale, Commerzbank and Unicredit. In addition, the presentation of the accounts of L ‘Oréal, Pernord Ricard and Total is also highlighted. The banking sector depreciated in the last three days, reflecting the drop in yields. In fact, in the last three months the rise in European yields, signs of a modest recovery of the European economy and the US elections had revived the interest of investors in the banking sector, leading the EuroStoxx 600 to a valuation of more than 20 %. In recent days, there has been a return to some uncertainty, much of the political forum, which has damaged the sector. Technically, the DAX continues to trade near the support formed by the 11490 area. A transfer of this level could trigger a short-term technical correction. Remembering stocks of cyclical companies have a heavy weight in the index. Given the loss of momentum that the most cyclical stocks have accused in other world markets, the DAX becomes vulnerable to a short-term correction.
The American stock market ended in different directions, albeit with contained variations. The banks showed a downward trajectory, for the 3rd consecutive day. This had been a very benefited sector with the policies presented by Donald Trump, being among the best performers. Oil prices reversed the downward trend after the US Department of Energy unveiled an unexpected drop in gasoline inventories that canceled the sharp rise in crude oil reserves. Oil inventories increased by 13,830 million barrels in the week ending February 3, against expectations of an increase of 2,695 million barrels, while inventories of gasoline decreased by 869,000, against an expected increase of 1,640 barrels millions. In the last few sessions, American State yields have been falling, boosting utilities and telecommunications shares. This movement attenuates the effect of correcting more cyclical actions, contributing to the moderate S & P daily oscillations. For today, the interventions of the President of the FED, Janet Yellen, and of the Presidents of the FED of St. Louis and of Chicago are foreseen.
Asian stock markets rebounded from initial losses due to soaring oil and gold prices. Japanese machinery orders increased 6.70% in December, compared with an expected growth of 3.10%.