Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, the European indices did not present a firm trend. As in the US, European investors will begin to pay increasing attention to the starting of the Earnings Season. The first trading hours should be marked by the results of ASML. The Dutch maker of semiconductor and chip manufacturing machinery (whose clients include Samsung and Intel) reported a profit of 551 M. € that comfortably outperformed the 481 M. € estimated by analysts. Sales amounted to 2450 M. €, also higher than anticipated. However, two items, to which investors attribute a significant weight, fell short of the estimated: the 3rd quarter margin and the 4th quarter sales projections.
The American markets closed with very modest fluctuations. The main note of the session is more mediatic than a financial one. Yesterday, the Dow Jones hit 23,000 points for the first time in its history. In fact, moving from 22,000 points to 23,000 represents an increase of only 4.34%. Even so, the Dow Jones’ remarkable breakthrough in the last decades is undeniable. In 1987, before the crash, the Dow Jones was trading at 2000 points. Before the end of the technology bubble in 2000, this index reached 10000 points. In the months leading up to the 2008-09 financial crisis, the Dow jumped to 13,000 points. Yesterday’s session continued to be characterized by the presentation of the results. Goldman Sachs reported higher-than-expected earnings and revenue as it managed to stem the decline in trading revenues (which had already had a negative impact on results in the previous quarter). Morgan Stanley also reported earnings and revenues that beat forecasts, with the bad trading revenue being largely offset by the good performance of the asset management unit.
Asian markets had a relatively quiet session, ending with contained variations. Today begins the main event of the week and perhaps of the year – the Chinese Communist Party Congress. This congress is held every five years and its main objectives are to elect the party hierarchies and establish the general guidelines of the country’s internal and external policies. The holding of the Chinese Communist Party Congress should not have an immediate impact on the financial markets (except for some relevant surprise) but will have profound political, economic, social and military consequences not only in the region but also in the world.