Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures: In the pre-opening, the European indices traded with slight gains. The main news of the weekend was the liquidation by the Italian State of two regional banks, Popolare di Vicenza and Veneto Banca. This settlement provides for an injection of 5200 M. € in the two banks and the sale of a part of its assets to Banca Intesa Sanpaolo, which implies the creation of guarantees up to 12 000 M. €. This news has a more mediatic impact than it does in the Italian market quotation, since the outlines of this operation were already known last week. Therefore, the evolution of oil will remain one of the key themes of today’s session. In Asia, crude traded higher (gains above 1%), which should boost the European oil sector.
The American markets ended with modest gains. The session was marked by the recovery of the oil sector. After the recent losses, oil managed to start a modest recovery, which boosted the respective sector. Friday’s appreciation could be explained by the closure of short positions (sellers) by hedge funds that sought to realize some profit taking or had no intention of holding high exposure to oil over the weekend. The pharmaceutical sector that led the rise of Nasdaq during the week paused. Although the sector as a whole has fallen by 0.10%, the biotechnology stocks that led the rally, due to the expectation that the legislation of the Trump Administration is favorable, managed to end with a gain of 0.20%. At the economic level, indicators continue to point to a slowdown in economic activity. The PMI economic activity index reached 53.00 in June, compared to the previous 53.60. The same indicator, but for the manufacturing sector, reached 52.10 compared to the expected 53.00 and the data for the services sector was fixed at 53.00, compared to the estimated 53.50. Sales of new homes during May increased 2.90% to 610 000. This increase was below expectations (3.70%), although it showed a significant recovery compared to April, a month in which fell of 11.40%. Today, oil developments are expected to influence the course of the Dow Jones and S & P, while the pharmaceutical sector will dictate the Nasdaq trend.
Asian markets closed higher, led by oil companies. In addition, there was a purchase of the sectors that had been penalized the most last week. It should be noted that several markets, such as Indonesia, Singapore, Malaysia, India and the Philippines, were closed because of the end of Ramadan.