Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
European stock markets closed in different directions. The utilities sector was among the best performers, with Germany’s RWE rising, favored, according to some analysts due to the absence of a coalition for Angela Merkel to form a government. AzkoNobel rose 1.27% after the Dutch company ended negotiations with Axalta, the leader in the liquid and powder paint business, with a view to a possible merger. On the contrary, in the retail sector, the Swedish H&M depreciated after JP Morgan reduced its target price. In the commodities sector, the price of oil rose in international markets (in the US it already surpassed the 58 USD a barrel barrier for the first time since July 2015), driven by the growing expectation of a decision to cut output during the OPEC meeting scheduled for next week. In addition, the news about the interruption of production in a pipeline in Canada, which implies an 85% cut in the supply of this raw material to the US, also contributed to its upward trend. In the political field, in addition to the current political uncertainty in Germany, attention was also focused on the UK and EU negotiations on Brexit on the day that Finance Minister Philip Hammond presented the latest State Budget. According to this document, British GDP is expected to grow 1.50% in 2017, a forecast that represents a downward revision compared to the estimate made in March and which indicated economic growth of 2%. Also estimates for GDP growth in the coming years were revised downwards (1.40% in 2018, 1.30% in 2019 and 2020, 1.50% in 2021 and 1.60% in 2022).
The US market was trading at a mild low as investors waited for the release of the minutes of the last Federal Reserve meeting. In terms of economic indicators, orders for durable goods declined by 1.20% in October, compared with an expected increase of 0.30%, while the consumer sentiment index, measured by the University of Michigan, reached 98.50 in November, compared to 98.0 estimated. Meanwhile, the number of unemployed people lost to unemployment benefits reached 239 000, practically in line with the planned 240 000. In business terms, Hewlett Packard was down around 5%, after Meg Whitman today announced that in February he will step down as CEO of the technology.