Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In pre-opening, European markets traded with different fluctuations, on a day that would naturally be characterized by an expectant attitude towards tomorrow’s events that could certainly influence financial markets: the UK elections and the ECB meeting . In the more microeconomic field, the banking sector will attract attention, due to the news about Banco Popular. In the long run, equities are influenced almost exclusively by the evolution of corporate profits and interest rates. Most likely, the recent appreciation of European equities is due to an intrinsic factor, in particular to capital flows that continue to flow into Europe. According to Merrill Lynch Bank of America in May, American savers subscribed about 15,000 M.USD in European shareholder funds, to the detriment of US specialized stock funds. As long as these subscriptions are not discontinued, European markets will continue to benefit from this support element.
The North American square closed in negative territory for the second consecutive session. Investors have kept their eyes on the three events marking the week, which are only foreseen for tomorrow: the UK elections, the ECB meeting and the testimony of former FBI Director James Comey in a Senate committee to clarify His position in the investigation into suspected Russian interference in last year’s presidential election and Donald Trump’s election campaign. Although they have maintained a vigilant attitude before these three events, to remember that recently the stock indexes reached new highs, with the retreats to represent opportunities of purchase. In the Dow Jones, Boeing shares contributed significantly to the index’s losses, while the S & P500 was fundamentally conditioned by the performance of cyclical consumer companies. In sectoral terms, industrial companies penalized the market, while the energy sector ended up limiting losses due to the recovery of oil prices. Petroleum inventories will be known today, with estimates pointing to a weekly drop of 3.1 million barrels of oil and a drop of 275,000 barrels of gasoline. The Dollar has retreated to the lows of the last eight months, while the gold price has risen to a new seven-week high. In the debt market, yields on 10-year Treasury Bonds have set a new low since the days following the presidential elections.
Asian stock markets closed once more without a single direction, with investors cautious about the events already described that will take place tomorrow. Assets considered as safe haven were valued, with the price of the pure and the Yen traded high.