Dax 30; Ftse 100; SP 500 - Market View

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European markets started the week in slightest decline, with the tech sector pushing the stock indexes. Under Brexit, it was reported that Deutsche Bank has transferred about half of its euro clearing activities from London to Frankfurt. Shares of the German bank rose 2.75%. BMW has remained largely unchanged after the press reported today that the German company will be the first automaker to raise prices on cars built in the US and to be exported to China in the context of recent global trade tensions .

 

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In the pre-opening, the European indices rehearsed in negative territory. The session will be marked by the release of several business results on both sides of the Atlantic. The technology sector will be more focused, not only by the observed behavior of companies in this area on Wall Street in the last session, but also by the fact that investors look forward to Apple's results. The business results agenda in Europe includes, among others, those of Credit Suisse, BP, Sanofi and Glencore. On the other hand, fears about the possible impact of Brexit on the car industry in Europe could influence this sector.

 

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The session will today be marked by the release of quarterly results by some of the most important European companies. Arcelor Mittal, Air France-KLM, Infineon, Lloyds Bank, BNP Paribas, Volkswagen, Rio Tinto, among others. The figures revealed may influence the company’s stock movement as well as its activity sector. BNP Paribas figures have already been known: net profit rose 53% compared to the previous quarter to 2390 M€, but slightly down from last year. The results published yesterday in the US by Apple may condition the stocks of several European technology companies that are its suppliers.

 

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Producers of raw materials and the automotive sector have been among the worst performers at a time when fears over trade tensions between the US and China are returning. Investors’ attention focused on the companies that presented their quarterly results as well as the Central Bank meeting.

 

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The technology sector is expected to be in the spotlight after Apple's behavior in the New York session. Investors are waiting for the US employment report.

 

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In the current context of deteriorating economic conditions in Turkey, the US market had slight losses. The technology sector was off the rule, with some gains.

 

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Yestrerday the Turkish President defended a retaliation against Washington for the worsening of the tariffs applied to imports of aluminum and steel coming from Turkey: Recep Tayyip Erdogan threatened to boycott the US electronic products, including the iPhone.

 

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European markets have recouped some of the losses recorded in recent days, given some relief over the crisis in Turkey and the US-China trade war. Encouraging the most positive sentiment from investors came the news that China accepted the US invitation to visit the country later this month to negotiate bilateral trade issues, as well as the announcement yesterday of Qatar’s financial support it promised to invest 15 000 M.USD in Turkey.

 

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European markets ended lower in the last day of the week, under pressure from the continuing fears and uncertainties associated with the situation in Turkey and the trade relations between the US and China. The banking sector, given the exposure of some institutions to Turkey, led the losses, while the technology sector was penalized by the news about the North-American company “Applied Materials”. In Paris, Air France-KLM devalued 3.54%, after confirmation of Benjamin Smith as new CEO. On the Eurozone, Eurostat reported that inflation in the region reached 2.10% in July, one tenth higher than in June and the highest since December 2012. In the European Union as a whole, inflation stood at 2.20 %, also a maximum since December 2012.

 

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The US market was trading higher, with S&P and Nasdaq reaching new all-time highs. Investors’ decisions were still being influenced by Friday’s words from the President of the Fed and the agreement reached by the US and Mexico. During the weekend, a head of the Mexican delegation had advanced that the negotiations were going well and today an agreement between the two countries was announced. Now the talks will extend to the other NAFTA member, Canada.