Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
With the US market opening lower, European stock markets have rebounded from gains in the morning. Good data on industrial production in China benefited producers of raw materials, with mining companies such as Anglo American, Antofagasta and Glencore showing a market overperformance. In Frankfurt, Adidas shares jumped 11.58 percent after the sporting goods company announced a significant stock buyback program, boosting prospects for 2018 and boosting its profit forecast for 2020, given the rapid growth of online trading. One of the best performers was also Prudential who gained ground after announcing a breakup of their M & G Prudential unit. In Madrid, Inditex rose 4.54%, on the day it reported that net income for fiscal year 2017 increased, thanks to strong performance in all stores. The holder of the well-known brand Zara announced that in 2017 it had sales of 25300 M. € and an EBITDA of 5280 M. €. The gross margin stood at 56.30%, and the company presented the proposal to distribute 0.75 € per share. In the banking sector, Commerzbank and Société Générale lost more than 1%. On the macroeconomic level, industrial production in the Euro Zone declined by 1% in January, a bigger than expected drop. On the other hand, the statements made by Mario Draghi, President of the ECB, allowed some moderation in expectations of a quick removal of monetary stimulus. Draghi said the ECB needs more evidence that inflation is on the rise to reach its target, and will only end up buying assets when it is confident that rising prices are sustainable to achieve the target.
Wall Street opened today’s session on an upward trajectory, but it subsequently retreated trading slightly lower at the closing time of European markets. The focus was on the economic data and the news on customs tariffs imposed by Donald Trump. Retail sales fell for the third month in February due to lower consumer spending on high-priced goods. The decline was 0.10%, compared to forecasts of an increase of 0.30%. If we exclude auto sales, retail sales increased by 0.10% in February, below the 0.40% anticipated. On the other hand, producer prices rose slightly more than expected (2.50%), which could have an impact on inflation. Boeing shares were downgraded, with Reuters news that President Trump is preparing a new import tariff package with China on target, with particular focus on the technology and communications sectors, whose imports are valued at 60 000 M.USD.