Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, the European indices rehearsed in slight rise. Today marks the return to negotiation of the main European markets which were closed two days to celebrate Christmas. Yesterday the closing of the European exchanges was justified by Boxing Day, a holiday celebrated the day after Christmas day. The tradition of Boxing Day has its origin in the United Kingdom, but it is celebrated in several countries that previously comprised of the British Empire. In sectoral terms, the highlight will be for oil companies, given the rise in the price of oil, and for producers of raw materials, due to the rise in the price of copper in Asian markets.
The US market ended yesterday with slight losses and reduced trading volume. This was mainly due to the performance of technological stocks, more specifically by Apple and the shares of Cupertino’s main suppliers, after the Taiwan’s Economic Daily reported that the company will revise in downgrade of about 40% its projections for the iPhone X sales in the first quarter of 2018, to 30 million units. Apple’s shares fell 2.54% yesterday, in what was its worst session since August. On the contrary, the retail sector stood out positively after Mastercard reported that US consumers spent more than 800,000 M.USD on holiday purchases, a number considered a record. This behavior was driven mainly by the increase in consumer confidence, the growth in employment and the fact that rebates in stores started earlier. But it was the oil companies that led the gains of the S&P500, valuing around 0.90%. In fact, the price of oil in international markets has soared to two and a half year highs, due to an explosion in a pipeline in Libya. In the US, West Texas Intermediate has risen more than 2% to its highest level since late June 2015. Remembering that Libya’s oil production has been recovering in recent months after being suspended due to the various conflicts in the zones of extraction. In terms of economic indicators, the S & P Case-Shiller index, relative to house prices in the 20 largest metropolitan areas in December, increased by 6.40% over the same month last year, up from 6.20% in the previous month. Today’s session is part of the period that corresponds to the so-called Santa Claus Rally. This period includes the last five sessions of the year and the first two of the new year. The Dow Jones and S&P500 indices completed at the end of last week five consecutive weeks of gains as a result of the tax reform announced by Donald Trump that reduces corporate taxation from 35% to 21%.
Asian stock markets ended in different directions. The Japanese market ended with a contained variation, although the oil sector recorded considerable gains. Inpex rose 2.31% and Japan Petroleum Exploration gained more than 3%. In China, the market was pressured by technology companies, as well as by the financial, pharmaceutical and insurance sectors. Meanwhile, copper prices have reached their highest in the last three and a half years, after data showing a 19% increase in annual imports of this raw material. It should be noted that the price of copper is considered by many economists as a barometer of global economic growth.