Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
European indexes closed higher, mirroring the rise in Asian markets and later US stock markets. World markets were thus boosted by the words from the President of the Fed in the Annual Forum of this institution, on Friday. Briefly, Jerome Powell argued that the economy remains “strong” and that it can cope with the process of normalization of monetary policy. However, the phrase that spurred the rise of stock markets was that “he does not believe that inflation rises substantially above 2% (official objective of the Central Bank) so that the increases in the rates of interest should be gradual.” In this context, the risk appetite, which had already been marked last week, has been strengthened. The exception to this very positive picture was the Milan Stock Exchange. Over the weekend, the Government of Rome decided to anticipate the hostilities with Brussels, threatening not to contribute to the next European Union budget because the European authorities failed to comply with the agreements reached with regard to immigrants who flock to the Italian coast. At the macroeconomic level, the publication of the IFO index, which measures the confidence of German businessmen, reached 103.8 in August, above economists’ estimates.
The US market was trading higher, with S&P and Nasdaq reaching new all-time highs. Investors’ decisions were still being influenced by Friday’s words from the President of the Fed and the agreement reached by the US and Mexico. During the weekend, a head of the Mexican delegation had advanced that the negotiations were going well and today an agreement between the two countries was announced. Now the talks will extend to the other NAFTA member, Canada.