Daily commentary – European and US stock markets

Daily commentary – European and US stock markets
Daily commentary – European and US stock markets
European markets

European stock markets opened lower this morning, ending their five-year high which was reached yesterday when the Stoxx Europe 600 index rose to its highest level since May 2008. Investors are also anticipating ECB President Mario Draghi’s speech on Thursday for more direction of the bank’s outlook on the economic situation.

Germany’s DAX30 was down 0.40% to 9,188.69, UK’s FTSE100 was falling by 0.55% to 6,686.54, while France’s CAC40 was slipping by 0.96% to 4,279.14 at the time of writing.  EasyJet Plc. was among the best performers in the FTSE100, gaining 6.29% to 1,335.00 p at the time of writing, while the German semiconductor manufacturer Infineon Technologies AG was the top DAX30 earner, increasing by 1.14% to €7.13. Renault SA was the only company on the green side of the charts in CAC40 this morning, rising by 0.94% to €63.0700.


US markets

After a strong rally at the end of last week, caused by White House favourite for Fed Chairman Janet Yellen’s support for the QE, US stocks started the new week a bit unconvincingly, ending Monday’s session in opposite directions. The Dow and the S&P500 touched milestone levels for the first time, crossing the 16,000 and 1,800 borders, respectively; however, both indices lost ground and closed lower.

Trading opened with confidence, but investors’ optimism was dashed by the report on the housing sector. Data was not very disappointing: a 54-point growth, just 2 points below analysts’ expectations. Investors, though, are used to getting strong support from the sector’s performance and unstable results usually have a negative effect.

The S&P500 declined by 0.37%, or 6.65 points, to close at 1 791.53, while during the session, the index peaked above the psychological 1,800 mark for the first time, but failed to sustain it.


The Dow was the only index to end trading with an increase in value, adding 14.32 points, or the modest 0.09%, to 15,976.02 points, still marking another historic high for this year. The blue-chip index also climbed, albeit briefly above the 16,000 level for the first time.

The technological Nasdaq ended trading on negative territory, wiping 36.90 points, or less than 1% off its value, to close 3,949.07.

One of the worst performers was Tesla Motors, as the company’s shares plunged by more than 10% to $121.49 per share after several workers were injured in a work accident in one of the company’s factories in California. Fresh stock market member Twitter Inc. also experienced a decline, with shares falling by 6.5% to $41.14 on concerns over the company’s growth potential.

On the winning side of the charts was Boeing Co. (BA.N), whose shares increased by 1.7% to $138.36.


Looking further in the day, not much is schedule to be announced, apart from Japan’s Exports and Imports for October (YoY). However, Fed’s Bernanke speech and the FOMC minutes tomorrow are expected to cause more action on the markets; the Bank of England Minutes and the US Retail Sales are some of the other events which will be closely followed as well.


Source: dfmarkets.co.uk


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