Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, European markets were trading slightly lower, as investors opted for greater prudence and caution, after Donald Trump had decided to withdraw from Congress the new health plan to replace Obamacare for failing to garner the necessary votes to be approved. Market opening will be marked by the absence of relevant business news, while in economic indicators the publication of the IFO confidence index in Germany is expected to return slightly, given the upbeat expectations for the coming years. Attention will also be focused on the oil market today, with Bloomberg citing Kuwaiti Oil Minister Issam Almarzooq: OPEC and other global allies are considering extending production cuts in the this year and are due to end in June.
The US market ended Friday’s session with slight losses, but on a weekly basis the biggest since the presidential election in November. The session was marked by the expectation of the new congressional vote on health care reform. However, the bill to repeal and replace Obamacare was withdrawn from Congress, following an order made by President Donald Trump, justified by the inability to collect the support needed for its approval by the House of Representatives. The banking sector, which posted the best performance in recent weeks, was the most penalized, with shares of Goldman Sachs falling 1.53%. In terms of economic indicators, orders for durable goods increased 1.70% in February, above the expected increase of 1.20%, due to higher demand for commercial aviation, with orders increasing by 48%. However, the confidence of private savers at Trump Rally has been losing some solidity. According to a study conducted by Bank of America in the week ending March 13, stock funds have been redeemed in the order of 8900 M.USD, the highest amount in the previous 38 weeks. Despite the global picture of stock markets, most respondents have a higher allocation to equities than their benchmark. When asked about risks at the current juncture, institutional investors point to rising interest rates, weak business results, political risks in Europe, a trade war between major economies and a sharp fall in state bonds.
Asian markets closed lower, penalized by investor concerns about US policy developments.