Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, European markets traded with slight gains, thereby conveying an attenuation of investors’ fears about geopolitical issues. Earlier this week European investors will have to face a series of events that could lead to greater risk aversion. Over the weekend, news surfaced in the US that the FBI was investigating under the so-called Russiagate, a senior Trump Administration official, and the Washington Post said that the official would be the President’s son-in-law, Jared Kushner. Today’s attention will be focused on Donald Trump’s visit to Jerusalem, where he will meet with Israeli and Palestinian leaders, and he will meet with NATO members in Brussels later this week. Meanwhile, on the Korean Peninsula, North Korea carried out a new ballistic test, which had a smaller radius of action than last week. This was the second ballistic test that North Korea has carried out since the election of South Korea’s new President, Moon Jae-in. For today a meeting in Brussels of the Eurozone finance ministers is scheduled to discuss Greece’s rescue program.
Last Friday, the US market rebounded from losses on Wednesday, a pattern that had already been seen since the day before. Remember that on that day the S & P500 suffered the biggest correction in recent months, due to the intensification of fears of a political nature and the consequent fears regarding compliance with the measures announced by the Trump Administration. The session was marked by the lack of business news and relevant economic indicators. The highlight was the intervention of St. Louis Fed Chairman James Bullar, who warned that financial markets do not seem to believe that the Central Bank plans to continue raising interest rates. The industrial sector led the gains, with Deere registering a recovery of more than 7%, after having released quarterly results above expectations. According to Reuters, of the 452 S & P 500 companies that have reported numbers, about 75% have performed better than expected. Also to be noted is the rise in oil prices, due to the expectation that OPEC will prolong the production cut that started in December last year. Political instability in Washington has influenced the decisions of American savers. According to Merrill Lynch Bank of America, in the week ending last Friday, specialized stock funds in the American market suffered redemptions of around 8900 M.USD. The main beneficiaries were the bond funds (subscriptions of 9900 M.USD) and to a lesser extent the European shareholder funds (subscriptions of 1100 M.USD).
Most Asian markets showed the biggest gains of the month, reflecting Wall Street’s positive close.