Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In pre-opening, European markets were trading on positive territory. After 9 months and 3 days from the referendum of Brexit (23 June), the United Kingdom will act on Article 50. This document, which is part of the Treaty of Lisbon, provides for the withdrawal of a State And is due to be delivered to Donald Tusk, President of the European Council, by the UK Ambassador to the European Union, Tim Barrow, at 12:30 p.m. However, negotiations between the European Union and the United Kingdom are not expected to be easy, not least because a number of factors will affect both parties. On the one hand, the Scottish Prime Minister has already announced the intention to promote another referendum on independence, so if it takes place and result in a separation it will be another issue for London to deal with. On the other hand, the political agenda of the next few days is getting more intense: French elections (first round on 23 April and second on 7 May) and the German elections (on 24 September). In fact, greater uncertainty will prevail until the next leaders of the two largest European Union countries are known. In the meantime, the President of the European Council, Donald Tusk, has already mentioned that he will present draft guidelines for the negotiation of Brexit to the 27 EU Member States within 48 hours of the United Kingdom formally untying the bloc . In the exchange market, during the months following Brexit’s victory in June 2016, the Pound depreciated significantly against the US Dollar and the Euro, reaching extreme values. However, with the developments regarding the application for exit from the European Union (through the activation of Article 50) and the emergence of relevant economic data, Libra has recovered.
The US market closed positive, with the Dow Jones index breaking the series of 8 consecutive sessions down. Investors have digested published economic indicators, but have kept an eye on the developments that are emerging on Donald Trump’s agenda. The financial sector, one of the most penalized in recent days, as well as the energy sector, helped by rising oil prices, helped to sustain market gains. Oil rose again, albeit mildly, after news of the collapse of production in Libya over conflicts with armed rebel factions. The Dollar recovered from recent declines that drove the US currency to a 4-month low over fears about the Trump Administration’s difficulty in delivering the anticipated, fiscal measures with an expected positive economic impact. In terms of economic indicators, the confidence index calculated by the Conference Board reached 125.6 in March, the highest confidence level since December 2000, above 116.1 in February and compared to the expected 114.0. On the real estate market, the S & P Case Shiller index, relative to house prices in the 20 largest metropolitan areas, registered an increase of 0.86% in January, above the expected 0.70% and 0.93% expected. Investor attention has also been focused on the statements of several Fed officials. President Janet Yellen revealed that the US labor market continues to face challenges but made no reference to monetary policy and Vice President Stanley Fischer said that Market view of two more interest rises this year “seems appropriate.” For today the interventions of the Presidents of the Chicago Fed (Charles Evans), of Boston (Eric Rosengren) and of San Francisco (John Williams) are foreseen.
Asian stock markets mostly ended up bullish after the recovery of the US market and investors waiting to formalize the UK’s request to exit the European Union. In Japan retail sales were published during February, which rose only 0.10% over the previous year, below the 1% recorded in January and the 0.50% expected by economists. This has disappointed the market, as it has increased uncertainty about the strength of proven consumption and underlined the country’s difficulties in generating inflation.