Market View; World Stock Indexes; Trading Journal

Stock Markets – Closing Note - 5 Oct
Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:

Stock markets have been penalized by rising interest rates on US bonds, which has left investors worried that stocks are overvalued as rising financing costs could hurt corporate earnings. Virtually all sectors made a negative contribution, except for the media. The sectors of raw materials, technology, automobiles and energy were the ones that most pressured European markets. Economic data on the US economy continue to show signs of robustness, reinforcing the prospect of further US Federal Reserve interest increases, which will exacerbate the cost of financing quoted shares. This Friday, October 5, the US Department of Labor revealed that the unemployment rate dropped to 3.7% in September, a low of 1969. It is necessary to go back 48 years to find a level of unemployment so low in the US economy.

Stock Markets – Closing Note - 8 Oct
Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:

European markets ended down, with several sectors reporting losses of more than 1%. Banks were again particularly affected by the current situation in Italy. The Italian stock market depreciated more than 2% and OT yields reached new highs. In fact, despite last week's more conciliatory stance, the weekend was marked by harsh criticism of the European project of the two party leaders who form the government. On the other hand, the weakness of the Asian markets, justified by the fall of the Chinese stock exchanges, also influenced the performance of the European markets. The Central Bank of China today reduced the reserve ratio of banks (percentage of deposits that banks are required to keep) by 1%. This announcement heightened fears about the economic impact of trade tensions between the US and China. However, today the Caixin PMI index was published, which describes the activity of service companies (mostly private and small and medium-sized), which in September reached 53.1, above 51.4.

The US market was on a downward trajectory, driven by fears about the recent rise in Treasury Bond yields. However, it should be noted that today the bond market was closed to commemorate Columbus Day.

Stock Markets – Closing Note - 9 Oct
Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:

Most European markets closed higher despite continued investor concerns about tensions between Italy and the European Union. On a day of parliamentary debate on the State Budget, the Italian stock market ended with a gain of more than 1%. The main catalyst for the rise was the skepticism shown by the Court of Auditors in relation to some items of the State Budget which could force the Government of Rome. In sectoral terms, the losses of the pharmaceutical sector contrasted with the gains registered by the Oil sector. Oil prices rose on international markets, the day the International Energy Agency warned that oil prices are rising too much, risking threatening the growth of the global economy. This agency calls on OPEC and other major producers to increase their supply. In Paris, Air-France-KLM registered a significant increase (5.19%), in the expectation that it will reach an agreement with the unions.

The US market traded in different directions on a day marked by the retreat of Treasury Bond yields from highs reached in recent days. The S & P500 saw slight gains, led by consumer discretionary companies and utilities. Alphabet shares were slightly appreciated. The company presents today its new smartphones Pixel, with Google Pixel 3 and 3XL to be revealed of official form. The Mountain View company event will feature two smartphones, a ChromeCast and a Pixel Slate.

Stock Markets – Closing Note - 10 Oct
Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:

European markets ended the session on Wednesday with sharp losses. The attentions remained focused on the unfolding of the political situation in Italy, which again conditioned the sentiment of global investors. In this context, the International Monetary Fund, in the report on Global Financial Stability released today, warned of the risk of contagion of the Italian situation for the whole financial system of the Euro Zone and global. However, it was the rise in yields in the USA and the subsequent negative reaction of the stock exchange in that country to dictate the direction of the European markets. The automotive sector and commodity producers were among the worst performers in face of exacerbating fears about global economic growth and rising US interest rates. In business terms, LVMH fell 7.14%, after having reported a slowdown in its sales. Other luxury goods companies also posted losses, after Morgan Stanley reduced its underweight recommendation.

The US market traded lower, again penalized by rising yields. Yields on 10-year Treasury Bonds traded around 2.30%, one day after peaking at their highest level since 2011 and yields on 2-year Treasury Bonds have peaked since 2008. Still, the banking sector benefited of this upward trend, with the securities of some financial institutions registering an overperformance. To remember that this situation of the debt market comes two days after starting a new Earnings Season. On Friday, the quarterly results of Citigroup, Wells Fargo and J.P. Morgan will be published.

Stock Markets – Closing Note - 11 Oct
Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:

As anticipated, the fall in US markets and its rapid spread to Asian stock markets intensified risk aversion on European markets. The strong rise in yields and worries about global economic growth were at the root of this negative sentiment among investors. Thus, the financial and technological sectors led the falls. The oil sector also conditioned the performance of European indices on a day when the price of oil fell by more than 1%. In the corporate field, shares of BMW fell 1.49% after news of the investment of 4200 M.USD in the joint venture with China's Brilliance Auto.

The US market was trading lower, although losses were being mitigated by the posting of lower-than-expected inflation. Inflation relative to September, measured by the consumer price index, was known today. This index reached 2.30% in annual terms, compared to the expected 2.40% and the previous 2.70%. If we exclude the most volatile goods (core version), it grew 2.20% below the expected 2.30%. As a result, Treasury Bond yields retreat from recent highs: 10-year Treasury Bond yields traded at around 3,167%, after having reached the highs of the last 7 years in recent days. It should be remembered that it was this upward trajectory of interest rates that aroused investor fears about the future of the monetary policy of the Fed, which yesterday was exacerbated by the comments of President Trump criticizing the Central Bank's actions. Already today, Donald Trump gave an interview during which criticizes the policy of the institution for being "too aggressive." On the labor market, the number of weekly applications for unemployment benefits showed a slight increase during the month of October, although it remained at minimum levels from the 60s. This indicator increased from 7,000 to 214,000, compared to 207,000 estimated.

Stock Markets – Closing Note - 12 Oct
Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:

The recovery that US futures and Asian stock exchanges got through last night inspired European investors. However and despite the positive sentiment coming from the Asian session, European investors still showed some nervousness during today's session. In fact, most Old Continent indexes were able to achieve gains of more than 1% in the first hour of trading. Subsequently, these advances were being lost, as the initial impetus was losing conviction.

In the US, investor sentiment was divided between the yields and the results of some of the major banks in the country. In the debt market there was a slight increase in yields but they were not intimidating investors. The earnings season began today with the quarterly accounts of JP Morgan, Citigroup and Welsl Fargo. JP Morgan reported an EPS of $ 2.34 and a banking product of $ 27,800 M.USD, compared with $ 2.26 and $ 27540 in advance. The increase in profits was mainly due to the good performance of the activity of providing credit to consumption. Citigroup announced a EPS that beat the estimates (1.73 USD vs. 1.69 USD) although the banking product fell short of anticipated (18389 M.USD vs 18501 M.USD). In part, Citigroup's results were favored by tax effects and lower costs. Wells Fargo, the largest US lender, posted EPS of 1.13 USD (est. 1.17 USD) and a banking product of 21900 M.USD, practically in line with the estimates. While shares of Wells Fargo and Citigroup traded bullish, JP Morgan bonds showed no significant changes.

Stock Markets – Closing Note - 15 Oct
Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:

European stock markets ended slightly higher, with most sectors on positive ground. After a very negative week, investors remain wary of geopolitical tensions, but are looking forward to the US earnings season that is expected to bring some confidence back. The telecommunications companies headed the gains, while the industrial sector was the protagonist of the biggest losses. In Germany, the stock market closed with a gain of 0.80%, although the results of the Bavarian elections yesterday confirmed the fears of investors. The CSU suffered a historic defeat reaching only 37% (compared to 48% of the last election), failing to reach a majority, thus forming a coalition. Meanwhile, the price of oil was watched more closely in the face of the current US-Saudi feud over the disappearance of a Saudi journalist. The European oil sector ended up bullish.

Wall Street traded lower, further accentuating losses from last week. In the technology sector, the falls of Apple and Netflix conditioned the performance of the Nasdaq index. Shares of Netflix were influenced by the price cut by an analyst, Raymond James, while Apple was hurt by the fact that Goldman Sachs had said that the Cupertino company's results could fall this year as a result of the slowdown in demand in China. In terms of results, Bank of America reported better-than-expected quarterly results and revenues. However, the action lost ground. On the macroeconomic front, retail sales for September increased by 0.10%, below the estimated 0.60%. If we exclude auto sales, this indicator decreased by 0.10%, compared to forecasts of a 0.40% increase.

Stock Markets – Closing Note - 16 Oct
Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:

European stock markets experienced a very positive day, with some sectors showing gains of more than 2%. The focus was mainly on the dispute between the United States and Saudi Arabia (following the assassination of the Saudi journalist in Turkey). The producers of raw materials presented a relative underperformance. One day after his government presented a controversial State Budget to the European Commission, the Milan Stock Exchange was the best performer of the day. However, it is important to underline that transalpine banking securities have been underperformance vis-à-vis other sectors.

Wall Street traded bullish, with investors cheered by the release of some quarterly results. The results of Morgan Stanley and Goldman Sachs outperformed forecasts, while BlackRock surprised by the positive outlook but fell short in terms of revenue. Outside the financial sector, we highlight Johnson & Johnson whose results were above expectations. In terms of economic indicators, industrial production during the month of September increased by 0.30%, compared to forecasts of 0.20%.

Stock Markets – Closing Note - 17 Oct
Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:

European stock markets closed lower, especially in southern Europe - Spain and Italy. The car industry was one of the worst performers, after it was reported that car sales in the European Union fell (23.40%) for the first time in 6 months. Volkswagen, Fiat and Renault titles led the losses. Also in sharp decline were the food and oil sectors. In Madrid, the stocks of DIA again showed a significant drop (-13%). In contrast, the technology sector, with ASML rising 3.47%, after its quarterly results surpassed expectations. In Amsterdam, Akzo Nobel also saw a considerable gain after the coating company announced that the profit from its main operations increased by 8%. Fresenius Medical Care shares fell more than 16% after the company cut its sales forecasts and prospects to 2018 in the face of a weaker performance at its US unit. In terms of economic indicators, the final reading of inflation for the Euro Zone during the month of September was in line with forecasts (2.10%). In its core version, which excludes the most volatile items, this indicator reached 0.90%.

On the day of publication of the minutes of the FED meeting and reaction to published business results, the US market opened in negative territory. The minutes of the FED meeting are a tool widely used by debt market players to gauge the sentiment prevailing within the Central Bank and what are the most sensitive issues for its members. The future of US monetary policy will depend essentially on two issues. The first is to know the level of interest rates from which monetary policy ceases to be accommodative and becomes neutral. The second concerns the Central Bank's dilemma whether monetary policy should remain in a neutral state or if it is to be tightened in the face of strong economic acceleration. Another document that can move the financial markets is what the US Treasury will publish regarding the foreign exchange market. In the business field, IBM shares fell 6.46% after yesterday after closing its quarterly results, which showed a drop in revenue higher than expected, due to the slowdown in software sales. Revenues reached 18760 M.USD, compared to estimates of 19,100 M.USD. The recurring EPS hit them 3.42 USD, against the expected 3.40 USD. On the contrary, Netflix presented its quarterly accounts, having registered a record number in the increase of the number of subscribers. The EPS was 0.89 USD, against the expected 0.68 USD. Revenues were in line with estimates. Thus, the shares of this company had a valuation of 4.53%. After closing, it will be Alcoa's turn to present its quarterly results.

Stock Markets – Closing Note - 18 Oct
Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:

European stock markets closed mostly lower, in a session marked by the presentation and consequent reaction to the published business results. At the same time, attention was focused on the current impasse in the Brexit issue. The DJSToxx Banks was penalized by strong selling pressure that hit Italian and Spanish banks. Transalpine bank bonds reflected the widening of the spread between Italian and German yields, which has hit the highs since 2013. The main Spanish banks were heavily penalized, with losses ranging from 2% to 6.50% on the day the Supreme Spanish Court ruled that it should be the banking institutions, not the client, to pay the stamp duty associated with registering a mortgage by changing the standard that has been followed so far. The media sector remained prominent, with France's Publicis rising about 3.75%, after the world's 3rd largest advertising company reported that net revenue increased 1.30% in the third quarter. In the retail sector, Carrefour led the gains, after having posted higher sales in the third quarter, referring to the strong performance of its main markets, French and Brazilian. Unilever said today that its sales growth was 3.80% in the quarter, with the increase since the beginning of the year at 2.90%. Total revenues amounted to 12500 M.USD, representing an annual decline of 4.80% due to a negative exchange rate effect and the sale of some of its businesses, which included brands such as Becel and ProActiv. Its shares fell 0.80%. Among technology, SAP% decreased 6.04%. The German company raised its outlook to 2018, after having seen solid growth in its cloud business. Ericsson posted a quarterly net profit that exceeded the estimates by a significant margin, standing at 2750 M.SEK, compared to the estimates of 630 M.SEK. Sales increased 8.90% to 53810 MSEK, also above expected 50280 M.SEK.

US indices were trading lower, reflecting a decline in major tech stocks and rising yields. Alcoa rose 8%, after yesterday after closing its quarterly results, which were above expectations, due to the rise in aluminum oxide prices. Excluding non-recurring items, Alcoa recorded a EPS of 0.63 USD, compared to the estimates of 0.50 USD. Revenues rose 14.40% to 3390 M.USD, above the expected 3310 M.USD. After the closing of the session will be known the results of American Express.

Stock Markets – Closing Note - 22 Oct
Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:

European markets ended the day in low. The rise of the Chinese stock exchanges and the first reaction of the bond market to the reduction of the rating of Italy gave an initial boost to the stock indices. The 4.50% rise in the Shanghai stock market enabled commodity producers and the auto industry to rank among the best performers. Fiat advanced 3% as a result of the news that it sold its hi-tech unit Magneti Marelli to a company owned by the private equity fund KKR for 6200 M. €. On Friday after closing, Moody’s downgraded Italian debt from Baa2 to Baa3 with a stable outlook. This is the last degree of the investment category and indicates a moderate credit risk. In an early stage, the market reacted positively, with Italian yields and its spread declining against the Germans. However, in the second part of the session, Italian bonds lost all ground gained in the morning, spreading their weakness to other European assets. Despite the conciliatory tone of the letter sent by Finance Minister Giovanni Tria to the European Commission, the Italian Government reiterated that it will not change the State Budget already presented. The Earnings Season remains one of the main themes of the week. Ryanair posted a considerable gain, despite having reported a profit for the second fiscal quarter below expectations. The company also announced that it has made significant progress in preventing further strikes. On the contrary, Philips fell more than 6% after its quarterly results fell short of forecasts. Shares of the Day suffered heavy losses (-25%) on the day the company revealed that it reviewed the accounts for 2017 and accounted for minus 20 M. € in revenues.

American indices traded without a common trend. The Dow Jones and S & P were being penalized by the correction of the banking and oil sectors. Nasdaq was trading higher, benefiting from the appreciation of the shares of major technology companies. This week, Microsoft, Google, Amazon, among other companies will report their quarterly accounts.

Stock Markets – Closing Note - 23 Oct
Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:

Today there were strong losses for European stock exchanges, with investors sentiment influenced by the weakness of the Chinese stock markets and the situation in Italy. Influencing investor sentiment has been the disappointing business results that have marked the last few days. The letter sent to Brussels by the Italian Ministry of Finance was released. In a conciliatory way in which it recognizes some correctness of the objections of the European Commission, the Italian Government has reiterated that it will not alter its Budget. As a result, the market was still waiting for further developments, with the Italian stock market ending up with a 0.70% drop and Italian 10-year yields up 8 basis points (0.08%) compared to yesterday. On the other hand, the poor performance shown by the Asian stock markets also penalized the markets, mainly the producers of raw materials, a sector very sensitive to the economic cycle of this country. Another sector that closed today with heavy losses was the technological one, due to a sharp fall of an Austrian chip maker, AMS. This company disappointed investors by presenting their outlook for the fourth quarter. In Frankfurt, Bayer fell 9.69% following confirmation in the US of the conviction of its subsidiary Monsanto for hiding the danger of Roundup, its herbicide with glyphosate. In the automotive sector, BMW has said it will call for overhauling 1.6 million diesel-powered vehicles worldwide due to problems in the exhaust gas cooling circuit. Renault reported its quarterly sales. Revenues amounted to 11500 M. € compared to the 12,200 M. € that analysts, on average, estimated. Renault cut its projections for the growth of the Chinese car market (2% compared to the previous 5%).

Geopolitical tensions around Saudi Arabia and some disappointing results were hampering the Wall Street session. Before the opening of the session, the results of McDonald's, 3M's and Caterpillar's were known. 3M reported lower-than-expected earnings and revenues while Caterpillar disappointed investors by reiterating its projections for the rest of the year.

Stock Markets – Closing Note - 24 Oct
Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:

European markets closed with losses in a session that initially had been influenced by the recoveries of the US stock exchanges the day before and the Chinese stock exchanges during the Asian session. Even so, volatility once again dominated the day, as some of the risks that characterize the current economic situation continued to be present. Thus, in the last hour of trading, the European indices lost all the gains made in the morning. The economic and financial situation in Italy has been marked, following the European Commission's disapproval of the Italian Budget for 2019, by an exchange of words between Rome and Brussels. This tension created a selling pressure on Italian assets and the Euro. Investors are now awaiting Standard & Poor's rating of the Italian debt rating, scheduled for Friday. The trend of the session was still influenced by the results reported by European companies before the opening. Barclays posted a better-than-expected result: quarterly profit before taxes increased from 1110 M.GBP in the same period in 2017 to 1460 M.GBP, compared to the expected 1330 M.GBP. Deutsche Bank said third-quarter profit fell 65% to 229 M. €, due to a decline in trading income, although it surpassed the estimates (229 M.€ vs. 149 M.€). Total revenues fell 9% to 6,200 M.€, practically in line with estimates. The bank reiterated its objectives for the coming quarter. STMicroelectronics reported an increase in sales and profit in the third quarter. Net revenues increased 11.20% over the previous quarter to 2520 M.USD, slightly above the company's target and operating profit increased 38% to 398 M.USD. The company said it expects fourth-quarter revenue to grow about 5.70% over the previous quarter.

The three main indices traded bearish. The Nasdaq and smaller S&P were being penalized for weakness in technology stocks. Today and tomorrow, companies like Microsoft, Google and Amazon will report their quarterly accounts. Dow Jones' losses were being mitigated in relative terms by the good performance of Boeing, a company considered a barometer of trade tensions between the US and China.

Stock Markets – Closing Note - 25 Oct
Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:

The opening of the European session was pressured by the heavy losses suffered by the American indexes yesterday. Subsequently, European markets were able to build a gradual recovery. Somewhat hesitantly, investors began to buy the stocks that had posted the biggest losses in the last week. This was also due to the absence of developments in the tense relations between Italy and the European Commission, which induced Italian 10-year yields to fall from 0.10% from 3.60% to 3.50%. This downward movement of these interest rates favored Italian banking stocks, which served as a catalyst for the rest of the European sector. The Earnings Season was relegated to the background. UBS announced that in the 3rd quarter it achieved a profit of 1200 M. CHF and an operating result of 7300 M.CHF. These two items exceeded analysts' forecasts. Daimler reported an EPS of 1.58€ less than the estimated 1.89€. Revenues amounted to 40210 M€ compared to 39330M€. The CEO of the company defended that in the fourth quarter is expected to see a recovery of activity. The ECB meeting was in line with the expectations of investors, and this institution reiterated the statement from the previous meeting. With regard to the political-budgetary situation in Italy, Mario Draghi was confident that an agreement between Brussels and Rome would be reached.

After the 4% drop yesterday, the US indices traded with a valuation that oscillated between the 1% of the Dow Jones and the 2.50% of Nasdaq. In addition to this recovery represents a technical reaction to yesterday's decline, the US indexes were reflecting the good results of Microsoft. The company reported EPS of USD 1.14 and revenues of USD 29080. These numbers compare with the 0.96 USD and 27880 M.USD forecast respectively. Microsoft was up 5.80%.

Stock Markets – Closing Note - 26 Oct
Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:

The results released by the North American Amazon and Alphabet penalized the sentiment of investors and, consequently, the European indexes that finished this last session of the week with strong losses. Several sectors reported losses of more than 2%. In fact, the day was marked by the reaction of investors to various business results known on both sides of the Atlantic. In the automotive sector, Valeo recorded a strong devaluation (-21.02%), after the automobile manufacturer downgraded its estimates, based on the slowdown of the Chinese economy. Total fell 1.52%. The French oil company reported a 48% increase in quarterly net profit, due to the increase in oil prices, to 3960 M.USD (slightly above forecasts). Revenues increased 27% to 54720 M.USD. Caixabank rose 0.43%. The bank announced that in the 3rd quarter it reached a net profit of 470 M. €. Net interest income stood at 1240 M. € and the CET1 (fully loaded) capital ratio was 11.40%. In Milan, ENI also appreciated (0.99%) after reporting that quarterly profit increased, due to higher oil prices and lower tax burden. Adjusted net income stood at € 1,390m, compared to € 1020m forecast. Meanwhile, investors are waiting for Standard & Poor's to announce the Italian debt rating. Currently, this agency attributes to Italy a rating of BBB, which corresponds to an adequate capacity to repay the debt contracted but in the future may deteriorate. This rating is two levels above the speculative or junk level.

The US market has returned to negative territory today, with the disappointing results of major technology companies masking published economic indicators. Alphabet and Amazon fell about 3% and 8%, respectively, after yesterday after the closing the two companies made known their quarterly results. The other companies in the FAANG group were also penalized. In terms of economic indicators, the Commerce Department reported that the US economy grew 3.50% over the previous year, up from the 3.30% expected by economists. In addition, private consumption (which contributes more than two-thirds to economic activity) increased by 4%, the May increase since the fourth quarter of 2014), above the expected 3.30%. GDP-related inflation stood at 1.70%, compared with 2.10% expected by economists. On the other hand, the consumer confidence index measured by the University of Michigan reached 98.6 in October, against the expected 99.0.

Stock Markets – Closing Note - 29 Oct
Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:

After a week of heavy losses, the first day of the week was positive for European stock markets. The decision by the Standard & Poor's agency to reduce only the outlook (perspective) of Italy's debt rather than its rating attenuates the risks associated with Italian fiscal policy in the short term. Italian banks today recorded considerable appreciations (over 3.60%). The automobile sector was responsible for part of the gains, having registered a valuation around the 2.90%. Companies like Volkswagen and Daimler rose more than 5 percent, boosted by Bloomberg news that China will reduce the tax burden associated with buying cars by 50 percent. Banks also lived a positive day, benefiting from some results. HSBC appreciated 5.80%, after having reported a profit before tax of 5922 M.USD (28% compared to the same quarter of 2017) and a banking product of 13798 M.USD (6.32%). These results, which surpassed the forecasts, were due in part to an aggressive but efficient cost cut.

The US market started its session on the rise, fueled by the news about IBM and the performance of the banking industry. IBM declined 3.16% after the company announced that it launched a takeover bid for Red Hat for 34,000 M.USD ($ 190 per share compared to Friday's price of $ 116.68). Red Hat is one of the world's leading experts in enterprise software, particularly in the hybrid cloud concept (based on a person's or company's own cloud interaction with a publicly accessible cloud). However, gains were however hampered by the negative behavior of some technology companies such as Amazon and Netflix. On the macroeconomic front, in September, household income increased by 0.20%, compared to the estimated 0.40%, while spending rose 0.40% in line with expectations. Inflation associated with consumption stood at 2%, also according to economists' projections.

Stock Markets – Closing Note - 30 Oct
Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:

European markets reversed to negative terrain in the afternoon, with virtually all sectors in negative territory. Leading losses were the producers of raw materials as well as businesses related to travel and leisure. Lufthansa reported quarterly results lower than forecasts, leading to significant losses (-7.76%). BNP Paribas shares fell 2.80% after the bank's quarterly accounts showed that trading income remains under pressure. On the contrary, the BP oil company appreciated around 2% after reporting quarterly profit more than doubled in the three months ending September. Volkswagen also gained ground, after reporting a quarterly profit of 2700 M.€ (145% on the homologous quarter of 2017) compared to the estimated 2290 M.€. In addition to the business results, attention was also focused on US-China trade relations, after it was reported that the Trump Administration was considering increasing the tariffs of 257,000 M.USD of Chinese products that had not yet undergone a worsening of the customs fee if the next meeting between the American President and the Chinese President (scheduled for November G20) is inconclusive. Regarding the macroeconomic scenario, inflation in Germany was published in October, which has risen more than expected, putting inflation at the highest level of the last decade, at 2.50%. At the same time, it was announced that in the third quarter the Eurozone grew 1.70%, the slowest pace since the end of 2014.

General Electric's results have disappointed the market, with the stock retracted to the lowest since July 2009. The company has announced a dividend reduction of $ 0.01 per share and said it will split the power unit into two new units. IBM also lost ground after UBS lowered its target price from $ 180 to $ 150. Meanwhile, Apple shares rose 0.28 percent on the day the Cupertino company introduced a new version of the Mac Mini, which it calls "the longest ever upgrade" of the device. In terms of economic indicators, and on the real estate market, house prices increased by 5.49% year-on-year, the lowest annual growth in the last 20 months. Estimates pointed to 5.80%. Consumer confidence in October, as measured by the Conference Board, reached 137.9, the high of the last 18 years, compared to the expected 135.9.

Stock Markets – Closing Note - 31 Oct
Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:

European stock markets ended higher in a session in which several sectors of activity closed with valuations above 2%. Of note are the gains of raw material producers, oil companies and the technology sector. As for the reaction of investors to the published results, Sanofi rose 4.67%, after the French pharmaceutical announced higher than expected profits and improved guidance. Also in Paris, L'Oreal appreciated 6.87%, after having released quarterly sales higher than those presented last year. In Madrid, Repsol reported results in line with the estimate and Fitch improved the company's outlook from Stable to Positive, while Telefonica posted higher-than-expected earnings improved its outlook for results for 2018. Both companies recorded considerable appreciations. On the macroeconomic front, inflation in the Eurozone accelerated to 2.20% in October from 2.10% in the previous month and expected by economists.

Wall Street traded higher, recovering part of the losses recorded during the month of October. General Motors and Yum! Brands were favored by their superior results. Coca-Cola also reported quarterly results above expectations, but its shares were now slightly losing. In the technology sector, Facebook was up more than 3.50%, after yesterday after closing reported its results and have informed that its margins should stop decreasing after 2019. Today's session was also boosted by employment data. The ADP Employment Report revealed that 227,000 jobs were created in the private sector, up from 187,000 expected. Also revealed was the Chicago PMI economic activity index which stood at 58.4, below the estimated 60.0.

Stock Markets – Closing Note - 1 Nov
Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:



The main European indexes were divided between gains and losses, pressured by the sharp fall in oil prices in the international markets. Despite this, they managed to close mostly and slightly higher, continuing a certain recovery after having experienced the worst month since January 2016 in October.

Interest rates in euro countries are rising, with the exception of Italy, in a scenario marked by uncertainty surrounding Brexit. The 10-year Italian debt rate is easing 5.2 basis points to 3.376%, moving away from the 3.6% peak reached when the European Commission cut Italy's budget.

On Wall Street, one could assist to an upward inflection. This after the US president assured this Thursday on Twitter that negotiations with China are "on track".

Stock Markets – Closing Note - 2 Nov
Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:

The positive sentiment triggered by the expectation of an agreement between the US and China encouraged investors in this last session of the week. The day was also marked by investors' reaction to Apple's results. Companies such as STMicroelectronics and Infineon, suppliers to the Cupertino multinational, were ultimately more influenced by positive sentiment in the markets than by Apple's behavior. In addition, the banking sector has also been in the spotlight, the day the European regulator will release the results of stress tests. More particularly, the results of Italian banks should be more scrutinized (since the beginning of the year, Italian banks' shares have lost 22% and 34% since their April high). At the end of today's session, Unicredit, Intensa Sanpaolo, BPM Banking and Unione Banche Italiane ended up with considerable gains.

The North American market opened up, favored by the expectation around the G20 meeting that will take place in Buenos Aires between November 30 and December 1. Donald Trump announced yesterday by tweet that he had talked on the phone with his Chinese counterpart and that the negotiations between the respective countries "are going very well". This telephone conversation precedes the aforementioned bilateral meeting. However, moods were fading after news today that members of the government have said that there is still no indication of an agreement between the two countries and that it may take longer to be achieved. Thus, at the close of European markets, the Wall Street trend was already negative. On the other hand, initial optimism was also fueled by employment data. The US Department of Labor revealed that during the month of October 250,000 were created, above the estimated 200,000. The unemployment rate stood at 3.70%, the lowest level of the last 49 years. In addition, wage growth accelerated from the previous 2.80% to 3.10%, the largest increase since April 2009. In the business plan, today's highlight goes to Apple that was devalued, after yesterday after closing the company has reported the results. Revenue and EPS outperformed analysts' forecasts, but Outlook (outlook) for the fourth quarter (usually the highest-grossing quarter of sales since it includes the Holiday Season) fell short of expectations. Apple expects next-quarter revenues to be between 89,000 M.USD and 93,000 M.USD, compared to 92700 estimated by analyst consensus. In addition, the company reported that it will stop reporting on the number of iPhones sales, a fact that was closely monitored by analysts, so the reaction to this announcement was not the best.