Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
European stock exchanges are trading on negative territory as investors react to the economic indicators disclosed and the outcome of the Fed meeting. Yesterday the DAX index reached an intraday high, with the Euro also appreciating against the Dollar for the maximum of the last six days. With the depreciation of the Dollar, the Pound surpassed 1.28 USD for the first time since the elections in the United Kingdom. In sectoral terms, banks and producers of raw materials presented an underperformance. It has been reported that China’s Fosun will acquire for more than 287 M.USD the British miner Gemfields. The shares of this company registered a significant gain, contrary to the performance of most companies in the sector.
US stocks dropped while the dollar advanced as traders digested the more hawkish tone from the Federal Reserve. The British pound swung to a gain after a split among policy makers over the path of interest rates unexpectedly deepened. The Fed raised interest rates for the second time in 2017 and Chair Janet Yellen suggested the strength of the U.S. labor market will ultimately prevail over recent weakness in inflation. Retail sales fell by 0.30% last month, compared to the forecast of a maintenance of the levels of the previous month. If we withdraw auto sales, this indicator also showed a decrease of 0.30%, compared to an expected increase of 0.10%. With regard to oil, the US Department of Energy reported that oil inventories declined by 1.6 million barrels last week, down from 2.3 million barrels. In turn, gasoline reserves increased by about 2 million barrels, against an expected decrease of 837 000 barrels.