Dax 30; Ftse 100; SP 500 - Market View

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In the pre-opening, the European markets traded lower. Political fears may once again condition investors' decisions following news that US President Donald Trump has asked former FBI Director James Comey to close the investigation to Michael Flynn, who was an advisor to the President To National Security for about a month. All of these news have heightened concerns about Donald Trump's ability to implement the announced program of measures, which includes tax reform and infrastructure spending, and has recently been one of the driving force behind stock markets.

 

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Asian stock markets ended on negative territory in the face of mounting political uncertainties in the United States. The Dollar depreciated significantly against several currencies, having reached the minimum of the last six months against a set of some currencies. Despite OPEC's efforts to curb overproduction, oil prices have fallen again.

 

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The opening of markets was marked by the absence of relevant corporate news, and in macroeconomic terms the agenda is also not very fulfilled. The highlight is the consumer confidence index of the Euro Zone for the month of April. According to economists, this indicator should remain relatively stable, after showing a worsening in the previous month. The decline in political uncertainty in France and the improvement in economic conditions on the basis of economic indicators should support confidence in the coming months. Remember that in recent days, political uncertainty in the US has favored the bond market.

 

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Political instability in Washington has influenced the decisions of American savers. According to Merrill Lynch Bank of America, in the week ending last Friday, specialized stock funds in the American market suffered redemptions of around 8900 M.USD. The main beneficiaries were the bond funds (subscriptions of 9900 M.USD) and to a lesser extent the European shareholder funds (subscriptions of 1100 M.USD).

 

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European stock markets closed higher as investors reacted to the latest economic data on the euro zone in a session that began with news of another terrorist attack in the UK.

 

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The Asian squares ended the session on mixed terrain. Moody's downgraded China's debt rating from "Aa3" to "A1", predicting that authorities would approve more economic stimulus. However, the agency has shifted China's "negative" outlook to "stable", since at "A1" level, "risks are balanced", highlighting the country's mechanisms to halt financial instability. Despite expecting Chinese GDP to continue to grow, Moody's ensures that the country's growth will slow in the coming years.

 

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Asian stocks were mostly up, reflecting the publication of the Fed's minutes and investors waiting for the OPEC meeting. In China, markets ended in different directions after Moody's decision to cut the rating of the country that led the Shanghai stock exchange to the lowest level in the last 7 months was announced yesterday.

 

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In the pre-opening, the European markets negotiated with a negative tendency. OPEC's decision to extend the reduction in oil production for nine months has somehow disappointed financial market players hoping to announce additional cuts in output. This sentiment immediately triggered a drop in oil prices and a deterioration of investor sentiment. With no economic indicators on the agenda today, investors will follow the G7 meeting in Sicily, Italy, which will cover issues such as trade and climate change.

 

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The North Korean nuclear and missile program continues to be a major issue as the country faces increasing pressure from the US and China on its missile test program. This was the 9th missile test conducted this year.

 

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Asian stock markets ended in different directions in a session where the Chinese and Hong Kong markets were closed. Retail sales in Japan were up 3.20% from the previous year, an increase higher than expected (2.30%).