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 lower. This week, in addition to the Fed meeting, the focus will be on the political front as in a few months begins important electoral events in the Eurozone and whose results may aggravate the uncertainty and fears to the current European project: legislative elections in the Netherlands next Wednesday (15 March), presidential elections in France (1st round on 23rd April and 2nd round on 7th May) and legislative elections in Germany (24th September). However, in addition to the political events mentioned above, it could also increase the pressure to start the UK negotiations with the European Union on Brexit, after the Prime Minister Theresa May informed that these talks would start at the end of March. So the British Parliament today will vote the law authorizing the prime minister to begin the formal process of the Brexit negotiations with the European Union and tomorrow Theresa May will address the Parliament. At the same time, the President of the ECB today is scheduled to speak at a conference to be held in Frankfurt.
The US market ended slightly higher on Friday, boosted by figures released by the employment report. The Dow Jones was driven mainly by the behavior of General Electric and Boeing, while the S&P500 was favored by the utilities sector but conditioned by real estate companies and Nasdaq. Nevertheless, in weekly terms, the indexes broke a long series of weekly earnings. The S&P500 and Nasdaq halted a series of six consecutive weeks of valuations, while the Dow Jones broke the 4-week earnings series. Thus, the focus was on the publication of employment data, but already with eyes on the Fed meeting scheduled for this week. In February, the US economy created 235,000 new jobs. As expected, the unemployment rate decreased from 4.80% to 4.70%, while hourly wages increased 2.80% over the same period last year, up from 2.60% in the previous month. This was yet another sign that confirms the prospect of solid growth, thus increasing the likelihood of a Fed interest rate hike next week. Oil prices have been closely monitored over the past week as concerns over the overproduction of crude oil have risen, leading to a drop in crude oil prices to a record low since November 29.
Asian markets have risen, boosted by the US employment report, though investors have been somewhat wary of falling oil prices for the last three-and-a-half-month low. In Japan, more economic data is now available: machinery orders in the country fell in January compared with the previous month at the fastest pace of the last five months, raising fears about the sustainability of the economy’s recovery.