Stock Markets – Closing Note – 21 Sep
Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
The last session of the week presented solid gains for the European markets, with the London stock market standing out with an overperformance. The theme of Brexit remains in the sights of investors. Yesterday, at the end of the informal summit hosted by European leaders in Salzburg, no concrete news emerged regarding the negotiation of the EU's relationship with the United Kingdom. With about six months to go before Brexit, which is still undergoing a transitional period until December 2020, European leaders were largely united in the warnings made to the UK. Already today, Theresa May said that discussions on Brexit between the UK and the EU are at an “impasse". The British prime minister added that she will not revoke the outcome of the referendum held in 2016. The British Pound reached the session minimum after this speech. In sectoral terms, and once again, producers of raw materials (including mining companies) made gains on a day marked by rising copper and nickel prices. In terms of economic indicators, the PMI economic activity index for the Euro Zone stood at 54.20 in September, compared to the estimated 54.5. The same indicator, but for the manufacturing sector, it stood at 53.3 (vs. 54.5 forecasted), while for the services sector it reached 54.7 (vs. 54.4 expected).
Wall Street traded higher, with the Dow Jones and S&P500 indexes renewing record highs. McDonald's rose more than 2 percent after the company raised its quarterly dividend by 14.90 percent to 1.16 USD per share. Micron shares fell about 3.50 % after the company cut its revenue estimates, reviving fears about declining demand for chips. Investors were also focused on the operations related to the maturity of futures and options, called the quadruple witching.