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. The focus remains on business results. UBS reported that net income increased 79% in the first quarter of the year, due to better-than-expected results in investment banking and asset management units. Investors are also awaiting results from Barclays, HSBC and Royal Bank of Scotland. Pharmaceutical Sanofi also presented its quarterly accounts, which reflected a better-than-expected result, and the company confirmed its outlook for annual profit. The net result reached € 1800 M., above the € 1600 M. forecast. As expected, the ECB kept the monetary policy unchanged, with ECB President Mario Draghi underlining that, despite the more favorable economic developments, he considered the rise in the price level still fragile, and the current support from the Central Bank remains important. Today the European statistics office unveils the latest inflation figures in the Eurozone. The advanced estimate should underline a recovery in inflation in the region during the month of April to 1.80% in annual terms. In addition, the figures for the growth of the Spanish and French economy during the first three months of the year will also be known.
The US stock market ended up, with investors waiting for the results of some technology companies whose weight in the economy is relevant, but that were only known after the closing of the session. In sectoral terms, information technology companies led the gains, while the energy sector fell more than 1% due to falling oil prices. In terms of economic indicators, orders for durable goods increased less than expected during the month of March, that is, increased by 0.70% compared to the estimated 1.30%. If we exclude transport orders, this indicator decreased 0.20%, compared with an estimated increase of 0.40%. On the labor market, the number of weekly applications for unemployment benefits reached 257 000, up from the expected 245 000. Regarding the real estate market, the pledged real estate purchase and sale contracts fell by 0.80% in March, compared to an expected 1% drop. Today will be published the first reading of the GDP of the first quarter of this year. The improvement in economic sentiment did not translate into a sharp increase in the real economy. The index of coincident economic indicators (whose denomination comes from the fact that their cycles coincide with those of the economy and as such a reliable sample) rose from 180.60 at the beginning of the year to 182.29 in March, a mere advance of 0.93%.
Asian markets ended sharply following President Donald Trump’s comments about South Korea, which have already sparked a backlash from South Korea: South Korea has said it does not intend to renegotiate a bilateral trade agreement with the United States, Nor pay for the US missile defense system (THAAD) that is being installed in the country.