Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
European markets closed today’s session with losses, albeit contained. Today’s sentiment was fundamentally marked by the expectation of the FED meeting that ends today (but the outcome will only be known after the closing of European exchanges), as well as the ECB meeting scheduled for tomorrow. In sectoral terms, trends were observed in different directions, with the positive result being the producers of raw materials and the negative effects of utilities. Among German utilities, Innogy fell about 13% after adjusting its forecasts for 2017. This behavior influenced the performance of RWE (-12.69%) and E.ON (-4.57% ). In the retail sector, Spain’s Inditex, which owns the well-known Zara brand, appreciated around 2% on the day it reported its results for the third quarter. Sales increased by 6% yoy and net profit stood at € 975 M. (vs. € 949 M. recorded in 2016), both practically in line with the estimates. According to CaixaBank BPI Research, the acceleration of the rhythm of sales in November should be seen as positive.
The US market traded positively, with investors expecting the Fed meeting. The current FED meeting is the last meeting of the Yellen Presidency. Although the mandate of the current President will not end until February 2018, Janet Yellen will entrust the Central Bank with Jerome Powell, the newly appointed President of the Fed. Financial markets have already anticipated the near-steady increase of 0.25% in interest rates to 1.25% -1.50%. The focus will therefore be on two themes: the revision of the macroeconomic projections and the individual perspectives of each FED member for interest rates in 2018.