Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
European markets ended the session lower after recent news of geopolitical nature. The summit that would certainly be historic, has now been canceled: President Trump considered it “inappropriate at this time to have this meeting.” On the other hand, Donald Trump ordered an investigation into the imports of the automobile industry to the USA, so at the corporate level, the consequences had repercussions in the automotive sector that led the losses. BMW and Daimler fell more than 2%. On the contrary, the telecommunications companies registered gains. Deutsche Telekom said it expects average annual revenue growth of 1% to 2% by 2021. By that date, adjusted EBITDA is expected to increase between 2% and 4% annually. The Italian market also showed a devaluation, in a session that 10-year Italian yields remained practically unchanged. In the currency market, the Euro appreciated about 4% against Turkish Lira, after rumors surfaced yesterday that the Turkish Central Bank would not protect its currency.
Wall Street was negotiating on a downward trajectory after President Donald Trump sent a letter to his counterpart Kim Jong-un, in which said was “inappropriate” at this time to hold a summit with the president of North Korea. This announcement came shortly after the Commerce Department briefed the investigation on car imports. It is worth recalling that Trump is also considering imposing new tariffs on imported cars for “national security.” Regarding the retail sector, Best Buy was down more than 8%, despite having reported comparable sales and solid quarterly results, the pace of online sales growth slowed, with weekly jobless claims up slightly to 234,000, compared to the expected 220 000. With regard to the real estate market, sales of used homes decreased by 2.50 % in April to 5.46 million, compared to an estimate of 5.57 million homes sold. Today, investors took positive conclusions from the minutes of the last FED meeting.This document has emerged that the Central Bank is tolerant in allowing inflation to exceed 2 However, the minutes indicated that reference interest rates should increase by 0.2 percentage points. 5% at the next meeting in June.