World Stock Indexes Trading - page 11
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US markets were also affected by the Attacks in Brussels, and the stock market indices reflected all the concerns surrounding this issue of geopolitical nature. Thus, initially the market was penalized by these events, with a clear preference for defensive sectors as opposed to riskier assets. However, and as in Europe, gradually this feeling was being absorbed, with the indexes recovering ground. The stock indices were pressured by financial stocks and cyclical consumer companies. Yesterday, the fears regarding the effects of negative interest rates in Europe and low interest rates in the US in bank balance sheets influenced, once again, the behavior of the titles of major financial institutions. Moreover, to aggravate the pessimism of investors was the decline in Crude prices after the recent trend of a strong correlation between this raw material and oil prices. The price of oil declined from the maximum achieved after the data for this industry have revealed that US crude inventories rose more than expected. Still, the price of this raw material have managed to maintain some support before the return of some risk appetite. Today will be published by the Energy Information Administration’s the inventories of oil and gasoline. At the macroeconomic level, the PMI index for the manufacturing sector improved slightly, from 51.3 in February (the minimum of the last 28 months) to 51.4 in March. The dollar, which was initially pressed by the reaction to the terrorist attacks in Brussels recovered subsequently, boosted by rising yields on sovereign bonds, after the President of the Federal Reserve Bank of Chicago, Charles Evans, has said he expects two more increases in interest rates this year, based on the current economic outlook.
Today at the end of the session is not excluded that European investors reduce their exposure to equity markets to the fact that the European markets only reopen on Tuesday and so are exposed to hypothetical adverse events during the four days they are closed.
EURUSD is in a very tight consolidation!
To much for my taste.
LCrude still moving down!
How far can it go?
At the moment, we only see some warning signs. But if the S & P breaks the area of 2020 and the DAX the 9750 this will power up a correction, at least in the short term.
Tomorrow begins a period that is seasonally negative for US equities. Until April 15th, the Americans will have to pay their IRS and many resort to the sale of shares and redemption of investment funds to finance this charge. Over the past 20 years, from the beginning of the month until that day, US markets were only able to achieve a positive return in only 30% of the time. This is only an empirical data, so it does not mean that US indexes will repeat this pattern this year. The important thing to remember is that in the next two weeks we shall able to attend to some selling pressure.
If wages continue to increase, its growth will lead many Americans to increase consumption and thus trigger a general increase in prices of goods. T
Perhaps the most important fact of this employment report was the strong increase in wages, which in March grew 0.30% compared to February.
The currency pair Euro/Dollar gains greater relevance when framed in the fact that the orders to German industry have experienced a bending of 1.20% in February compared to the increase expected of 0.30%. The German export sector has been penalized by the weakness of many overseas markets, especially the Chinese.