Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
European markets ended with contained changes on a day marked by the maturity of futures and options. The London Stock Exchange ended up high (0.56%), the day European leaders formally approved the start of the second phase of the Brexit-related talks. In sectoral terms, retailers were penalized by the news from H&M. In Stockholm, H&M shares fell 13.24%, after the well-known garment company reported a 4% quarter-on-quarter decline in its sales to SEK 50400 (SEK), falling short of the foreseen 53900 M.SEK. The company has suffered growing competition from Spain’s Zara, which has been more aggressive and effective in the area of e-commerce. To counter this competition, H&M is strengthening its partnership with China’s Alibaba. In the telecommunications sector, Deutsche Telekom agreed to acquire the Dutch unit of Tele2. Shares of the German operator fell 0.72% and the Swedish Tele2 shares rose 1.65%.
The US market closed higher with investors keen to watch for fiscal reform developments. Concerning Final Tax Measure, in the joint House-Senate legislation released, which is expected to be voted on next week, the crucial provisions for companies in earlier bills remained. They include a cut in the corporate rate, increased deductions for capital spending and lower levies on repatriating overseas profits. One significant change from the Senate bill is that the rate reduction (to 21 percent from the current 35 percent) will begin next year, instead of being delayed until 2019. That could lead to a chaotic last few weeks of 2017, as companies try to best position themselves. In the business field, Oracle shares corrected more than 4 percent after the company reported a 44 percent drop in cloud sales. Software sales, which remain Oracle’s core business, remained flat in the quarter. On the contrary, Disney and 21st Century Fox valued themselves, still as a reflection of the announcement of agreement for the purchase of Fox by Disney. In terms of economic indicators, industrial production increased by 0.20% in November, an increase below the 0.30% estimated by economists.