Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
European markets traded higher on a day marked by lower than usual liquidity, a trend that marked the week. Some more specific news has boosted their respective sectors, and sentiment is still conditioned by the current trade tensions between the US and its main partners. The Euro appreciated against the Dollar, in view of the agreement reached by the leaders of the European Union on the issue of migration. Producers of raw materials led the gains. Anglo American said it expects results for the first six months of the year to be at least 20% higher than in the same period last year. The mining company rose more than 4%. In terms of economic indicators, Eurostat reported that the inflation rate in the Eurozone increased from 1.90% in May to 2% in June.
Wall Street traded higher, favored by gains made by banks. At stake was the announcement of repurchases of own shares and dividend increases by some institutions in reaction to the result of stress tests conducted by the Fed to the largest banks operating in the US. Of the 35 analyzed, 34 were positive. The US unit of German Deutsche Bank was the entity that failed in these stress tests, and now has to provide additional evidence. It should be recalled that in this second phase, the Fed assesses the financial strength of the largest financial institutions operating in the US and analyzes if they have sufficient capital buffers to overcome a crisis similar to the one of 2008. Nike advanced about 12 %, having already reached the all-time high, after reporting quarterly results and revenues that exceeded estimates. Even so, the indexes are aimed at ending the week low, mainly affected by the issue of customs tariffs in the US and China. The Trump Administration is expected to activate its customs duties on Chinese goods on July 6 next Friday. In terms of economic indicators, household income during the month of May increased by 0.40%, in line with estimates, while household expenditures grew by only 0.20%, below the expected 0.40%. Inflation associated with consumption, the measure preferred by the FED, reached 2%, against the expected 1.90%. The Chicago PMI economic activity index stood at 64.1 in June, compared to the expected 60.0, while the University of Michigan consumer confidence index fell short of the estimates (98.2 vs 99.0).