Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, the European indices traded with contained losses. The banking sector may be in focus after the European Commission approved the restructuring plan for Monte dei Paschi di Siena, Italy’s third-largest bank. This operation consists in the injection in to the bank of 5400 M. € by the State and 4300 M € by private institutions. The bank will sell 26,000 M. € of bad loans, which will be partly bought by a specialized fund, Atlante II, which is owned by the state, banks and institutional investors. The plan, whose details will be announced this afternoon, includes the reduction of branches and workers. This operation was already widely known by the market and approval by the European Commission was quite predictable. This news, although known, can reinforce the positive sentiment in the Italian banking sector and in Europe.
Yesterday, American markets were closed, and Independence Day was celebrated. After this untypical start of the week, investors should prepare for three particularly intense sessions. The central banks, after a few months playing a minor role, once again took center stage. As of today, investors will interpret the various economic data, trying to anticipate the future decisions of the Fed. Among the several indicators of this week stand out today’s publication of the minutes of the last meeting of the Central Bank and the employment report. From the minutes of the meeting, investors will try to gauge the Central Bank’s motivations for raising interest rates in June and to have maintained a stern stance on the future even as inflation outlooks plummet and the US economy slows. On the other hand, in today’s session the car sector could be influenced by the announcement of sales on Monday, as on that day the market closed earlier and yesterday was closed, so investors have not yet reacted to this event. During the past month, car sales in the US fell 3%, being the 6th consecutive monthly decline. Sales of Fiat Chrysler fell 7.40%, Ford’s 5%, General Motors 4.70% and those of Korea’s Hyundai-Kia decreased 15%. On the contrary, sales of Nissan, Toyota and Honda showed slight increases in sales, although these were not enough to offset the falls in Detroit (which remains the heart of the American automotive industry). Volkswagen sales grew 11% year-on-year, when the level of sales was very low, although this increase fell short of estimates.
Asian markets ended with contained variations. The session was ruled by some caution, due to the recent weakness of some American sectors and the launch by North Korea of a missile on a very symbolic date: US Independence Day. In addition, the Caixin PMI index for the services sector in China was published, which in June was flexed from 52.8 to 51.6. The services sector is less influenced by public enterprises and more focused on the domestic market and has in recent months shown greater resilience due to the deceleration of the Chinese economy and the lower availability of credit, due to the monetary policy more restrictive monetary authorities Chinese.