Stock Markets – Closing Note – 17 Jan

Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:

At today’s session, European indices eventually ended with losses, although in sectoral terms the directions have diverged. Media companies were among the worst performers, after Pearson dropped significantly as a result of lower revenues in the first nine months of the fiscal year. Altice was penalized (-4.55%) for some downward revisions of its valuation. The banks were also low on a day when this sector attracted attention in the United States. On the contrary, the technology sector closed up, after ASML reacted with a gain of 4.95% to its results. The supplier of chip makers today reported their results, which were benefited by the fact that some customers have requested the anticipated delivery of the products ordered, due to the current phase of vigor of the semiconductor industry. Thus, the fourth quarter of 2017 increased from 524 M. € to 644 M. €, compared to the estimated 454 M. €. Sales reached 2560 M. €, above the 2100 M. € expected, and the company said that it expects to register net sales of 2200 M. € in the first quarter of this year. However, orders received increased from 5700 M. €, registered at the end of September, to 6700 M. €. The car industry has slightly declined, although car sales in Europe have grown by 3.30% and the total number of vehicles sold has reached its highest level in the last 10 years. Volkswagen lost ground, despite sales of the German manufacturer having increased 4.30% in 2017. In Paris, Carrefour down 1.75%, and after closing will report its quarterly sales. Analysts estimate they have dyed the 23220 M. €.

After yesterday they interrupted the recent positive trend, stock indexes returned today to the performance that has marked the beginning of the year. The Earnings Season for the banking sector remained one of the themes of these days. Today the quarterly accounts of Bank of America, Goldman Sachs and U.S. Bancorp were known. Bank of America shares fell more than 1 percent after the bank reported a quarterly banking product below its estimates (20440 M.USD vs. 21490 M.USD), although the results were influenced by the recent tax reform. EPS reached USD 0.20, compared with USD 0.39 recorded in the previous year and USD 0.45 expected. Goldman Sachs reported the first quarterly loss in six years due to lower trading activity and a non-recurring cost. If we withdraw this extraordinary item, the EPS reached 5.68 USD, above the expected 4.91 USD. In terms of economic indicators, industrial production increased 0.90% in December, for the 4th consecutive month. Estimates indicated an increase of only 0.30%. On the other hand, on the real estate market was revealed the sentiment of the builders, whose index fell two points to 72.0 in January, compared to the forecasts of 73.0.