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 on an upward trajectory. In this last session of the week, the attention of investors will be more focused on the field of politics, since on Sunday will be held the second round of the French elections. This time, the investors’ apprehension about this event is less. In the last few days, hedge strategies have not been set up in the derivatives market, so it is concluded that the vast majority of investors expect Emmanuel Macron to win. The polls, which were particularly accurate in the first round, point to a Macron victory with 60% of the votes vs. 40% of Marine Le Pen. Perhaps the share market could have a negative reaction if the percentage of Marine Le Pen comfortably exceeds 40%. This scenario would indicate that dissatisfaction with the European Union is stronger in France than previously thought. In addition, such an outcome would indicate that it would be more difficult for Macron to count on Parliament’s support. Legislative elections will take place on 11 and 18 June. The point is that Macron does not have a party but a movement in the Marche. Without a party and if victory in the presidential election is narrower than anticipated it will be difficult for Macron to form a government without the support of other parties, which may limit the degree of action of his policies. In the Asian markets, the Euro traded near the highs of the last six months. The oil sector is expected to be impacted by falling crude oil prices to below $ 50 a barrel for the first time since OPEC and some outside producers agreed to cut output to raise prices for crude oil.
The US market ended with contained variations on a day marked by falling oil prices and another vote to replace Obamacare. About a month and a half after many representatives of the Republican Party joined Democrats to defeat the proposal to repeal and replace Obamacare, another vote was held yesterday, from which a different result came out: the conservative majority succeeded to approve this proposal, the most emblematic of the Obama Administration, with 217 votes in favor (all of the Republican Party) and 213 against (all of the Democratic Party and 20 of the Republican Party). However, the bill will still have to be discussed in the Senate, where negotiations will be more difficult. The health sector traded high for most of the session, having been the 2nd best performer of the S & P500 index. Meanwhile, oil prices fell to a low of the last five months, trading below $ 47 a barrel after a lower-than-expected drop in weekly crude oil inventories was posted on Wednesday. Shares of Caterpillar and Chevron penalized the Dow Jones index, which recovered much of the ground lost during the session. Regarding the Earnings Season, of the S & P 500 companies that so far have reported results, more than 70% exceeded estimates in terms of results and 60% exceeded forecasts in terms of sales. Tesla lost 5%, after reporting a quarterly loss, despite surpassing estimates in terms of revenue. Facebook shares lost 0.67 percent after CEO Mark Zuckerberg warned of “significantly lower” future revenues in the future, even though first-quarter revenue surpassed forecasts. The company has announced the creation of some 3000 jobs to combat violence. At the macroeconomic level, the number of weekly applications for unemployment benefits decreased from the previous 257 000 to the 238 000, with an estimated 248 000. On the other hand, factory orders increased by 0.20% in March, a lower increase To the expected 0.40% and the expected 1% increase. Attention will be focused on the employment report.
Asian markets finished lower, with the Japanese being closed. Investors have responded to falling commodity prices and are awaiting the US employment report.