Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In pre-opening, European markets traded on mixed ground. Today’s focus will be on business results (highlighting Allianz, Arcellor Mittal and ThyssenKrupp) as well as oil prices and economic indicators on both sides of the Atlantic. The rally unleashed by the result of the 1st round of the French presidential elections led the main European indices to extremes from the technical point of view. This condition coupled with the sharper drop in these indices yesterday, increases the likelihood of a short-term technical correction.
The US market ended in negative territory, conditioned by the retail sector. In fact, the session was marked by the results of two of the major retail chains. Macy’s reported a better-than-expected drop in Q1 revenues, as well as net income. Revenues fell 7.50% to 5340 M.USD, against the forecast 5470 M.USD and adjusted EPS fell from 0.40 USD to 0.24 USD, compared to the estimated 0.35 USD. The respective shares fell about 17%. In turn, Kohl’s reported its quarterly results. Net income increased 14% to 66 M.USD, or 0.39 USD per share, above the 0.09 USD recorded in the same period last year and the estimated 0.29 USD. Sales stood at 3840 M.USD, below 3970 M.USD in 2016 and 3910 M.USD expected. In relation to oil, the price showed an upward trajectory, despite the OPEC report on this market. This report conveyed that supply continues to outpace demand, that is, OPEC’s production cutbacks in order to push up prices did not achieve the objective of reducing the market imbalance. In terms of economic indicators, the number of weekly applications for unemployment benefits reached 236 000, down from the expected 245 000. Today published inflation (measured by consumer prices) and retail sales, as both data refer to the main engine of the American economy: consumption. For today, the intervention of Chicago Fed Chairman Charles Evans is also envisaged, whose subject matter is expected to involve issues of monetary policy and economic conditions.
Most Asian stock markets ended lower, pressured by data on US retail sales. The price of oil rose slightly for the second consecutive session.
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