Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, European markets were negociated without a definite trend. The evolution of oil will continue to influence investor sentiment. In the Asian session, the price of crude oil did not show a clear trend, which will lead investors to a more expectant stance towards the oil sector. Technically, several indicators are beginning to point to an oversold situation for Brent, although the main support zone is only between USD 41.50 and USD 43.50. The European indices most sensitive to oil prices are English, French and Italian. The rise of the Nasdaq during the New York session should attribute an overperformance to the European technology sector. In England, investors will follow the talks between the Conservatives and the Unionists of Northern Ireland to form a coalition government.
US markets have closed with opposing trends, reinforcing the pattern of intersectoral rotation in recent weeks. The technological sector was one of the best performers of the session to the detriment of the miner and the oil company. These trends explain the good performance of the Nasdaq when compared to the Dow Jones and S & P. The Nasdaq100 surpassed the 5775 barrier, which had been indicated as the level at which the odds of a recovery became more significant. The factor that most influenced yesterday’s intersectoral rotation was the drop in oil. This feedstock continues to be the target of fears of overproduction, which has attracted sales from many hedge funds. Yesterday, the Department of Energy reported that crude oil stocks fell by 2.5 million barrels (a drop above the forecast of only 1.12 million barrels) and those of gasoline fell by 600 000 barrels (against an expected increase of 114 000 barrels). On the macroeconomic front, despite higher house prices and a lower supply, sales of used homes increased during May to reach 5.62 million (representing an increase of 1.10%). Economists estimated that this indicator had reached 5.54 million.
Asian markets closed with modest gains, with the exception of the Japanese that ended practically unchanged. The behavior of oil was the main theme of the session, with this raw material outlining an attempt to recover. In this context, the rise of the oil sector in Australia was observed but it was not accompanied by its Japanese and Korean peers. The decision to include the shares quoted on the Chinese mainland markets in the MSCI Emerging Markets Index had a slight positive impact in the course of the session. The effects of this decision will be more visible in the long term, since its implementation, as mentioned yesterday, will be gradual in time.