Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In pre-opening, European markets were trading bullish. The positive sentiment on Wall Street following Fed President Janet Yellen’s speech should be reflected in European markets, though political uncertainty continues to linger on the financial markets scene. Greece has once again been a source of concern these days and in this context it was reported today that Eurogroup President Jeroen Dijsselbloem said that Greece and its creditors should not reach an agreement before the meeting scheduled for next Monday, aggravating Fears that the country will again be in default. At the same time, business results are also being monitored. Credit Agricole today announced a 67% decline in quarterly net income to 291 M. €, compared to estimates of 301 M. €. Revenues from the 2nd largest French bank in terms of assets and admitted to trading rose 7% to 2580 M. €. Regarding the commodities market, the price of oil was down today, fearing that OPEC could not maintain its strong commitment (known so far) to cut production of this raw material. This afternoon, the US Department of Energy will publish the inventories of crude oil and gasoline in the country, which could influence the behavior of the price of oil.
The North American market closed again on a high and with new highs reached. The S&P500 closed at a new high for the 15th session since the presidential election, driven mainly by the financial sector, which has already appreciated 20% since last November 8. The day was marked by the speech of Janet Yellen, the Fed Chairman, before the Senate. In fact, the expectation around this event was great, although there was no surprise. Janet Yellen noted that it is “unwise” to wait too long to raise interest rates if the labor market and inflation continue to thrive, thereby reiterating the objective of “moderate” interest increases. Following the statements, 10-year US Treasury bonds rose more than 0.05% to 2.4896% after touching a two-month low. From the agenda of economic indicators to be revealed today, the highlight goes to inflation, retail sales and industrial production in January. Regarding the consumer price index, forecasts point to a growth of 0.30% over the previous month, with energy prices registering the 5th consecutive increase. In annual terms, the CPI should have increased by 2.40%, in line with the 2% target set by the Fed. On the other hand, in the face of rising gasoline prices and falling auto sales, retail sales Will have increased 0.10% in January.
Asian markets ended in different directions, despite optimism stemming from the words of the President of the US Federal Reserve. In Tokyo, Toshiba shares fell more than 8 percent, after Reuters reported that the company expects to see losses of 6300 M.USD due to the devaluation of its US nuclear unit – Westinghouse Electric – after the acquisition, at the end Of 2015, by CB & I Stone & Webster. The company expects to sell more in the chip business area to quickly raise its capital. The company’s chairman, Shigenori Shiga, has already resigned.