Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
European markets ended lower on a day when the focus was mostly on business results and the expectation surrounding the FED meeting. In London, Capita shares fell 47.47%, after the outsourcing company issued a profit warning, announced a capital increase and suspended its dividend. Banco Santander rose 0.88%, after reporting that during the fourth quarter it posted a net profit of € 1542 M., down 4% from the same period last year and from € 1,460 million. However, in annual terms, the result reached 6619 M. €, which represents a growth of 7% over the previous year. The extraordinary costs amounted to 897 M. €, including 300 M. € associated with the integration of Banco Popular. In Frankfurt, Siemens reacted positively to the presentation of its results: the German company reported a quarterly industrial profit of 2210 M. € (-14% compared to the same period in 2016) but still exceeded analysts’ forecasts (2100 M. €). The results were penalized by the energy and gas units. On the contrary, Infineon depreciated 1.06%, on the day it announced quarterly sales of 1780 M. €, slightly below the estimated 1790 M. €. However, the company reduced its projections for annual sales growth from 7% to 11% for an increase between 3% and 7%. The reason for this warning is due to the strength of the Euro, which for the calculation of the projections of the company went from 1.15 against the Dollar to 1.25 €. In turn, ArcelorMittal, the world’s largest steel producer, reported a quarterly profit of 2140 M.USD, which exceeded 2,070 M.USD. For 2018, the company proposes to distribute a dividend per share of $ 0.10. The respective shares fell 1.17%. On the macroeconomic front, price increases in the Euro Zone slowed earlier this year, but less than expected: the January inflation rate was 1.30%, after 1.40% in December. The so-called core inflation, which excludes food and energy prices, rose from 0.90% to 1%.
Wall Street opened on a high note on a day marked by significant events: quarterly results of companies with significant stock market indices, economic indicators and the FED meeting, which will be signaled by Janet Yellen’s testimony to Jerome Powell. It should be noted that of the companies belonging to the S&P 500 index, 80% reported numbers above expectations and 81% beat estimates in terms of revenues. In terms of economic indicators, the ADP employment report showed that 234 000 jobs were created during January, well above the expected 185 000 but below the previous 250 000 observed in December. On the other hand, in the first month of the year, the Chicago PMI activity index stood at 65.70, against 64.0 forecast. On the real estate market, real estate purchase and sale contracts in December showed a monthly increase of 0.50%, an increase in line with expectations.