Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, the European markets were trading slightly higher, with the attention focused on a series of results that are foreseen for the present day. Barclays returned an annual profit (1600 M.GBP), driven by the increase in revenues in the area of investment, namely bond trading and favorable exchange rates. In the insurance sector, Swiss Re reported a decline in its annual net income of 938 M.USD in the previous year to 517 M.USD, while France’s AXA reported a 4% increase in net income in 2016 to 5830 M.€ (But below the estimated 5840 M.€). In the automotive sector, Peugeot, which is in talks to buy General Motors’ European operations, has announced that it will pay a dividend for the first time in six years after posting a significant increase in its 2016 profit (2150 M. € , 79% higher than in the previous year). Investors in Europe are increasingly divided: on the one hand, they are surrounded by uncertainty about the political scenario (presidential elections in France and the Brexit process) which has led to a search for assets considered as refuge. On the other hand, the most encouraging prospects for the growth of the global economy and business results have been one of the supports of the stock markets. Yesterday the Euro appreciated against the Dollar, partly reflecting the new changes in the race for the presidential elections in France: François Bayrou will not advance in the elections and will support Macron.
During yesterday’s session, US stock indexes remained close to record highs, but the S&P500 and Nasdaq Composite ended up falling back into negative territory. The Dow Jones had the 9th consecutive closing at maximum levels. In the opening hours of the session, there was some expectancy regarding the main event of the day, the publication of the minutes of the last Fed meeting, from January 31st and February 1st. However, the market reaction to this disclosure was not significant, as it was disclosed that central bank monetary policymakers are mostly in favor of a fresh interest rate hike in the near future. Janet Yellen had already said on 18 January that the US economy was “close” to meeting the country’s central bank targets for inflation and employment and was confident that it would continue To improve. However, last week, Yellen said in the Senate that there are risks in waiting too long to raise interest rates. However, the Fed Chairman gave no indication of the timing where interest rates will rise again. The Fed’s next meeting is scheduled for March 15, with market expectations now pointing to a likely 27 percent interest rate hike. In sectoral terms, oil companies have conditioned the market after the price of oil fell with Reuters news that the appreciation of the dollar nullified the positive sentiment triggered yesterday by the statements of OPEC Secretary General Mohammad Barkindo. DuPont, which climbed 4.50% after news that European Union regulators are in the process of approving the merger with Dow Chemical, considered by many as a historic merger. It also notes the data on the real estate market that favored sentiment: sales of second-hand homes increased by 3.30% in January from the previous month, to a total of 5.69 million, the highest level since 2007. To point out for today, the intervention Of Atlanta Fed Chairman Dennis Lockart.
Asian markets traded slightly lower after Wall Street closed and the reaction to the release of the minutes of the last Fed meeting.