Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, the European markets negotiated in different directions. The main theme of the day is the US Federal Reserve meeting, but whose outcome will only be known after European markets close. However, political developments in Europe will continue to be in the spotlight. With regard to the United Kingdom, the leader of the DUP, the Irish unionist party that Theresa May counts on to guarantee the parliamentary majority, said yesterday that the negotiations are “going well” and there should be an agreement “sooner rather than later.” The BBC also said that the agreement could be sealed today. In terms of business, the Spanish company Inditex today presented its results for the first quarter of the year. Net income rose 18% to 654 M. €, in line with analysts’ estimates. Sales were slightly above expectations (€ 5569 M.) and EBITDA stood at € 1113 M., against the expected € 1103 M. €. In terms of economic indicators, industrial production relative to the Euro Zone will be published.
The recovery of the technology sector allowed a positive closing of the American stock market in the session yesterday. In fact, after two days of heavy losses due to fears that some companies in this sector, such as Facebook, Apple, Amazon, Netflix and Google, could be losing momentum, buyer interest has again encouraged the market . The Dow Jones and S & P500 indexes renewed historic highs and the Nasdaq led the gains. The main event of today’s session is the meeting of the US Federal Reserve whose outcome will be known at 7:00 p.m. The market places a high probability that the principal interest rate will increase by 0.25% at the meeting on 14 June, with the respective interval increasing to 1.00% -1.25%, with the likelihood of a further increase of 0.25% by the end of the year, possibly in September. The market also expects the Fed to present its vision for the macroeconomic scenario, which should confirm positive growth prospects at a moderate pace, in a near-full-employment economy with inflation close to the 2% . Before the Fed decision is known, two major economic indicators, retail sales and consumer price index will be published. The latter is expected to show a price correction during the month of May, due to reduced gasoline prices, which are further accentuated by seasonal factors.
Asian stock markets closed without a single direction. Influencing the session was the fall in the price of oil, as well as economic data on China. Industrial production in the country grew 6.50% in May compared to the same month last year, a growth that slightly exceeded forecasts. In addition, retail sales increased by 10.70%, also above estimates.