Daily commentary – European and US stock markets: 5 December 2013

DF-Markets_stock_marketEuropean markets

This morning European stock markets opened with a little change from their previous sessions of losses. Investors will be following very closely the two main events on the European economic scene today: the monetary policy decisions from both the European Central Bank and the Bank of England as market makers will be looking for more direction. The UK’s FTSE100 was down 0.07% to 6,505.32, France’s CAC40 was falling by 0.04% to 4,146.70, while Germany’s DAX30 was the only one on positive territory, rising by 0.05% to 9,146.48 at the time of writing.

DAX30

German chemical and pharmaceutical company Merck KGaA was the top earner in the DAX30; gaining 2.96% to €128.550, while multinational software company SAP AG was the worst performer within the index, falling by 0.80% to €59.490 at the time of writing. French multinational telecommunications company Orange SA was again performing well, being the top earner in the CAC40 with an increase by 2.13% to € 9.4980 this morning. The FTSE’s “brightest star” today is UK-based diversified metals and mining company Vedanta Resources Plc., whose shares were up 2.48% to 867.000 p at the time of writing.

 

US markets

US stock markets headed down again, reporting yet another unconvincing performance in the last few sessions. The fall was also triggered by a release of mixed US macroeconomic data which left investors with controversial feelings about the future of the Fed’s quantitative easing programme.

The release of the so-called Fed’s “Beige Book”, which is the central bank’s assessment of the current economic state, caused one of the biggest impacts in the US market movement.

The report revealed a predominantly positive outlook of the US economy, with most attention paid to the country’s GDP, which, according to central bankers, will keep its current pace, with expectations for the next year being for a 2.4% growth.

However, the ISM (Institute for Supply Management) published a slowing growth in the Non-Manufacturing PMI in November, which dampened the market mood a bit. The index which reflects the behaviour of companies in the service sector fell to 53.9 points in November, from 55.4 points in October.

The S&P500 ended the session with a decline, albeit minimal, of 2.34 points, or 0.1%, to close at 1,792.81 points, marking its fourth consecutive session on a negative territory.

S&P500

The Dow also closed the session with a fall, after wiping 24.85 points, or 0.2%, off its value, ending the session at 15,889.77 points, also extending to a fourth day of losses.

The Nasdaq was the only benchmark to differ as it closed on positive territory, adding the modest 0.80 points, or less than 0.1%, to close at 4,038.12.

Investors are paying very close attention to Apple’s performance in recent days, as the tech giant’s shares rose by more than $15, or 3%, to close at $566.32 in the last two sessions, reaching their highest price in one year.

 

Today is already shaping up as a busy day as the economic calendar has a lot on its plate. Main events, apart from the Bank of England and the European Central Bank interest rate decisions, include the UK’s Asset Purchase Facility, the preliminary release of the US GDP for Q3, along with the country’s Initial Jobless Claims, Factory Orders for October, and Personal Consumption Expenditures Prices for Q3.

 

Source: dfmarkets.co.uk

 

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