Europe finds itself with greater uncertainty in the main indices of the stock market, in Europe they began today with loss, pressed by some reports of business profits below the expected, as the case of the French company Valeo (PA: VLOF) which manufactures automotive parts and the Royal Bank. of Scotland (LON: RBS).
Valeo’s shares fall 9% and reach a six-month low, while Royal Bank of Scotland shares fall 4%. Ironically, bank RBS (NYSE: RBS_pl) has reported its first annual gain since 2007, but even so, its shares fall because the result was below what was expected.
Europe market in expectation
As the negotiation session in Europe proceeded, the Eurozone’s inflation data came out in line with expectations, but that was not enough to support the main stock market indexes in the region. The possibility of the European Central Bank changing its monetary policy continues to worry stock investors. In the United Kingdom the FTSE 100 has not managed to enter positive territory due to the downward pressure that the business report of the Royal Bank of Scotland is giving it.
The rise in the dollar this week and a slight increase in loan costs have kept the global stock markets somewhat weak during Friday’s session. The MSCI index of global stocks is preparing to close its third week to the downside of the last four weeks.
The last few weeks have been somewhat volatile for virtually all sectors with investors paying special attention to the 10-year US yield rate and the possibility of another interest rate increase by the Federal Reserve (Fed. ) of the United States.
The uncertainty could increase further during the next week in Europe, because on March 4 there are general elections in Italy and in Germany the vote will take place to decide if the Social Democratic Party is going to join the Christian party of Democratic Union of Chancellor Angela Merkel to form a coalition government.
The elections in Italy are important, because they could leave a parliament without a ruling majority and play the possibility that the center-right Forza party wins, which has promised to get Italy out of the European Union and the euro.
In Europe, stock indexes return quickly to the downside after having been oscillating around yesterday’s closures. The FTSE 100 of the United Kingdom falls 0.37% and is located at 7.225 points. The Dax of Germany falls 0.19% and reaches 12,437 points.
The Cac 40 in France falls 0.27% and stands at 5,294 points. Italy’s FTSE MIB falls 0.10% and reaches 22,440 points. The Ibex 35 in Spain is the one that has fallen the most and loses 0.86% to reach 9,794 points, moving further and further away from the 10,000 points area.
In the United States, the Dow Jones and the S & P 500 closed yesterday’s session in positive territory, while the Nasdaq closed in the negative. The Dow Jones rose 0.66% and closed at 24,962 points, but in fact if the session had been longer, it could have closed downward because the momentum was bearish towards the end of the day.
The S & P 500 closed with a gain of 0.10% in the 2,703 points, but this index could also have closed downwards if the session had lasted a few more minutes. The Nasdaq falls 0.11% and closes at 7,210 points.
The euro against the dollar returns to the downside, but consolidates around 1,2300 where its 200-month exponential moving average is found. The pound against the dollar also returns quickly to the downside after failing to overcome the 1.4000 area.
At the moment, the GBP / USD returns to the area of 1.3900, but it is possible that this level acts as support in the parity as it has done in the last three sessions. The dollar index yesterday had a small bearish reversal, but today it is rising again although the 90.00 level is acting as resistance.
The yen remains somewhat mixed with its main counterparts. The USD / JPY tries to return to the upside as the dollar is again supported by the 10-year US yield rate, but could find some resistance at 107.18.
The EUR / JPY breaks below the 200 day EMA at 131.63, but has not yet confirmed a real break of that moving average. The GBP / JPY is still stuck at 149.00 which is precisely where its 200 day EMA is located.
The bitcoin goes back to the area of 10,000 dollars, but consolidates in that area without taking a clear direction in the midst of low volatility. The volatility in bitcoin has been falling little by little to keep the cryptocurrency in a range between 10,000 and 12,000.
The ethereum continues to oscillate around its 55-day EMA at 868.63. The litecoin slows its bearish retracement in the 55-day EMA around 185.00 and bounces up to 204.79. The ripple is maintained around 0.92.
Gold tried to move higher during the session yesterday, but today it is back down towards 1.328. Gold has lost 1.6% during this week, this being its worst weekly decline since the beginning of December. Copper finds good resistance again at 325.00 and falls to 322.40.
Copper is still boxed in between its 55-day EMA at 317.62 and the whole-number level at 325.00. Silver remains around 16.55, while WTI loses its bullish momentum at 62.41. The basic goods sector has risen 0.21% at the moment.
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