Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, European indices traded at a slight low. The session will today be marked by the release of quarterly results by some of the most important European companies. Arcelor Mittal, Air France-KLM, Infineon, Lloyds Bank, BNP Paribas, Volkswagen, Rio Tinto, among others. The figures revealed may influence the company’s stock movement as well as its activity sector. BNP Paribas figures have already been known: net profit rose 53% compared to the previous quarter to 2390 M€, but slightly down from last year. The results published yesterday in the US by Apple may condition the stocks of several European technology companies that are its suppliers.
On the last day of July, the US market ended up in face of greater optimism about trade tensions between the US and China. Bloomberg said the two largest economies in the world are trying to resume negotiations to avoid a full-blown trade war. The report said Treasury Secretary Steven Mnuchin and Chinese Deputy Prime Minister Liu He are discussing the issue. As a result, two large exporters like Boeing and Caterpillar rose 1.50% and 2.90%, respectively. Much of the session was based on the expectation of Apple’s results that were only known after the closing of the session. Procter & Gamble and Pfizer reported results above forecasts, ending the session with gains of 0.90% and 3.50%. In terms of economic indicators, household expenditures showed a solid rise of 0.40% during June, but below the estimated 0.50%. On the other hand, the S&P / Case-Shiller index registered a monthly variation of 0.40% in May and 6.40% in relation to the same month of the previous year. Meanwhile, the Chicago PMI economic activity index hit the highest level of the last 6 months, reaching 65.5 in July. At the same time, the Consumer Confidence Index, as measured by the Conference Board, stood at 127.4 in July, after 126.5 in the previous month. In monthly terms, July was the best month since January for the Dow Jones (4.70%) and for the S & P500 (3.60%). Nasdaq rose for the fourth consecutive month, having appreciated more than 2%. The big event of today’s session is the FED meeting, which is not expected to be big news, nor will there be a regular press conference. The next increase in interest rates is not expected until September and the FED should not give great signs in terms of new monetary policy outlook.
Asian markets closed without a definite direction, with investors digesting retaliatory developments in trade tensions between China and the US. In China, the market reacted negatively to the publication of the PMI activity index for manufacturing, which stood at 50.8, down from 51.0 in June, but in line with the estimates.