Dax 30; Ftse 100; SP 500 - Market View

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The banking sector depreciated in the last three days, reflecting the drop in yields. In fact, in the last three months the rise in European yields, signs of a modest recovery of the European economy and the US elections had revived the interest of investors in the banking sector, leading the EuroStoxx 600 to a valuation of more than 20 %.

 

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Asian markets peaked in the past 18 months, boosted by gains on Wall Street and economic data revealed about China. Dollar-denominated exports rose 7.90% over the previous year and imports grew by 16.70%. The Yen depreciated, benefiting the main exporting companies.

 

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For this week, 54 companies from the S & P500 will be presented, including PepsiCo, Kraft Heinz and Cisco Systems. According to the FactSet, and so far, of the S & P500 companies that have reported their results, 67% have exceeded estimates in terms of profit and 52% in terms of sales.

 

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"More men have become great through practice than by nature."- Democritus

 

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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.

 

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For the fifth consecutive session, North American indices closed at new highs, something that had not happened since 1992. At stake continues to be the promise made by Donald Trump of a phenomenal plan and soon that includes less regulation and a great fiscal reform.

 

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Wall Street traded on negative territory, keeping some of the trend already in the previous session and investors opting for some caution in anticipation of a longer weekend: on Monday the US stock exchange will be closed to “President’s Day” celebration. The Dow Jones industrial average opened with a slight drop, after reaching a record high for the 7th consecutive session, at 20639 points on Thrusday. On the macroeconomic front, the leading economic indicators registered an increase of 0.60% during the month of January, above the estimated 0.50%.

 

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In the automotive sector, Peugeot, which is in talks to buy General Motors’ European operations, has announced that it will pay a dividend for the first time in six years after posting a significant increase in its 2016 profit (2150 M. € , 79% higher than in the previous year).

 

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The Dow Jones industrial average rose to a new high, boosted by Chevron and Boeing shares, while the S&P500 index also hit a record high with the appreciation of the energy sector.

 

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Oil prices rose more than 1 percent on the day the US Department of Energy reported that oil inventories rose by 564 000 barrels in the week ending April 17, compared with an expected increase of 3.4 million barrels and after the increase of 9.5 million barrels in the previous week. Regarding gasoline reserves, there was a decrease of 2.62 million barrels, higher than an estimated decrease of 1.16 million barrels.