Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
European markets closed at a session in which the earnings season remained the main topic of the day. The automotive sector was highlighted. Daimler depreciated about 0.60% after the German company reported quarterly results and revenues in line with expectations. The performance of the company’s activity was shaken by the sharp drop in the sale of Mercedes (-22%) and a higher than expected cost related to the collection of non-compliant vehicles. Even so, Daimler said it expects 2017 sales to rise significantly. In Milan, Fiat Chrysler appreciated more than 1%, recovering from negative reaction on Wall St. (-5.89%) yesterday due to the news from a US newspaper that the production in several establishments will be reduced, by virtue of the new rules on imports of vehicles in China. Also on the rise were Swedish shares of Volvo, in response to quarterly results higher than expected. Regarding the producers of raw materials, the overall trend in today’s session was positive, supported by the copper price trajectory.
The US market opened up, favored by the positive expectation regarding the tax reform. In fact, yesterday the Republicans were able to approve their proposal for the public deficit for fiscal year 2018. This bill will now have to be reconciled with the bill passed by the House of Representatives. The Dow Jones has already renewed an intraday high, boosted by the positive performance of shares of Cisco Systems, American Express and JP Morgan. Shares of PayPal, a member of the S&P500 index, rose about 5 percent after the company reported quarterly results above expectations. However, the earnings season continues to attract investors’ attention. General Electric (-2.42%) posted a lower-than-expected result that led its shares to a significant decline. Despite the conglomerate’s accounts, there were restructuring costs and frank performance in the areas of energy, oil and gas. After deducting restructuring costs, earnings per share were USD 0.29, compared to the expected USD 0.49, while revenues increased by 14% to USD 33470, above the forecast USD 32560. Still, the company reduced its forecasts in terms of annual profit. In terms of economic indicators, sales of used homes increased 0.70% in September to 5.39 million, up from the expected 5.31 million.