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. Despite the encouraging economic data published on the Chinese economy, the European political landscape continues to be a source of concern for investors, particularly in the UK, given the forthcoming elections scheduled for 8 June. The latest polls suggest that in these elections Prime Minister Theresa May may lose the majority in Parliament. In recent days, her margin over the Labor Party has been narrowing. Theresa May called these early elections to strengthen her parliamentary position and could thus have more power in the Brexit negotiations. Consequently, the Pound depreciated against the major currencies. In sectoral terms, producers of raw materials and the banking sector should be closely monitored.
After three days closed, the New York stock exchange finished lower, despite the technological sector having limited superior losses. The session was mainly marked by investors’ reaction to published economic indicators. In the Dow Jones, Goldman Sachs losses had a significant weight in the performance of the index, while in the S & P500, the energy sector was the worst performer. Nasdaq also lost ground, despite the behavior of some technology such as Amazon whose shares hit a new record high, temporarily exceeding the $ 1000 per share, then ending at $ 996.70. Since the beginning of the year Amazon has appreciated more than 30%, favored by solid results in its main retail area, as well as by the company segment related to the Cloud. During April, household income and expenditure increased by the same magnitude (0.40%), a scenario that was already expected by economists. Inflation associated with consumption also came in line with the estimates, standing at 0.20% in monthly terms and 1.70% in annual terms. Regarding the real estate market, in March, house prices in 20 metropolitan areas, measured by the S & P Case Shiller indicator, rose 5.90% over the same month last year. The Consumer Confidence Index, measured by the Conference Board, was also known, which in May stood at 117.9, compared to the expected 119.5. The Federal Reserve will publish the Beige Book, which will be a preparation event for the next Fed meeting in mid-June. The Beige Book is therefore expected to confirm a moderate rise in prices, information which would be compatible with expectations of a rise in interest rates at the meeting on 13 and 14 June.
Asian stock markets ended in different directions in a session where political uncertainty in Europe also dominated the spotlight. In China the PMI economic activity index was published, which stood at 51.20 from the estimated 51.00, while in April industrial production increased by 4% against the expected 4.30%.