World Stock Indexes Trading - page 19

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 In England, real estate funds continue to suspend the possibility of redemption. English real estate market, especially in the London area, has been one of the most dynamic worldwide. Several investors sought this market to diversify its portfolio of assets, other acquired properties in England as a solution to a situation marked by equal interest rates or below 0%. Other investors faced the English real estate market as a refuge: in 2011, the Greeks were the main buyers of homes in London. Now, with the strong depreciation of the pound these investments lost value when denominated in the national currency of these investors.
 
The Italian Government submitted a recapitalization plan for the banking sector (the most urgent the Monte dei Paschi di Siena) by state intervention, which is allowed by European standards but only under certain conditions. One of those conditions is that the bondholders participate in this plan through a partial restructuring of the debt they hold on banks. It is at this point that differs from the position of the Italian Government and the European Commission. At the end of 2015, the insolvency of four regional banks that affected nearly 20,000 private bondholders created a deep social objection that the Italian Government now wants to avoid. The second part of the Italian plan provides that a fund (consisting of banks, foundations and other institutions) buy the bad debt of some banks.
 
Begins today officially the earnings season in the US, with the publication of quarterly Alcoa’s accounts, but only after the closing of the session. The forecasts point to a result per share of 0.09 USD, below the 0.19 USD recorded in the 2nd quarter of 2015. Although there is no statistical correlation between the quarterly accounts of Alcoa and the general trend of Earnings Season, the results of this company always have a impact on investor psychology.
 
Once again Asian markets closed higher, led by Japanese equities. After the electoral victory of the weekend, Prime Minister Abe stated that his executive is ready to take further measures to stimulate the economy, according to some members of his party, could amount to 100 000 M.USD. In China, inflation relative to June increased 1.90% compared to 2% in May. The Beijing government has an official target of 3%. This confirms the slowdown of the Chinese economy and raises expectations among investors that new stimulus measures may be adopted.
 
US markets extended the recent rise, with the S & P and Dow Jones reaching a new record high during the session. For the rise contributed some positive signs from Europe (including the end of the political stalemate in the English Conservative party) and the electoral victory of Shinzo Abe in Japan, whose promised measures of stimulus have indirect consequences on Wall Street. In addition also had influence the strong recovery of oil and the need for many fund managers follow the rise of the benchmark indices. Against this uncertain scenario, the fund managers had adopted a defensive posture, which will now have to leave if the S & P continue to appreciate in value.
 
Asian markets traded without major fluctuations. Once again, Japan was the exception to extend the recent rise, triggered by the victory of Shinzo Abe in the elections of last weekend. However in China, economic data continues to generate some apprehension. In June, exports fell 4.10% and imports% 8.40. Imports fell for the 20th consecutive month. The fall in exports indicates a lower economic activity in major Chinese trading partners, while another bending of imports indicates a slowdown in domestic demand, which so far has shown some resilience to the general slowdown in the economy.
 
Yesterday US markets closed higher again, extending the recent appreciation. In addition to the positive environment that has marked the last few sessions, the American indices were boosted by good results from JP Morgan and its effect on stocks of other banks. JP Morgan reached in the 2nd quarter an unexpected increase in profits, with the unadjusted EPS reaching 1.55 USD compared to 1.54 USD in the same period of 2015. Revenues amounted to 25200 M.USD. These figures exceeded the forecasts of analysts who foresaw an EPS of 1.43 USD and revenue 24300 M.USD. The increase in the credit transfer as well as increased activity of the credit cards unit allowed the bank to overcome a very adverse environment. JP Morgan’s shares rose 2%. Today, the earnings season continues with Wells Fargo and Citigroup. The results of Wells Fargo are particularly relevant to the assessment of the situation of the provision of credit to the extent that this institution is the largest lender in the country. The results of JP Morgan improved investor sentiment towards the banking sector, which had previously been penalized by the gradual decline analysts’ estimates and the reduction of perspectives regarding possible increases in US interest rates.
 
The situation of the Italian banking sector and not yet visible effects of Brexit may have been the reason for the redemption of European equity funds. The funds dedicated to emerging markets gathered 6100 M.USD subscriptions in the last two weeks and funds specializing in bonds with yields and high risk registered 4400 M.USD.
 
After the UK Referendum its time to switch from news driven volatility trading and to update our models for the near future
 
Asian markets closed mostly with modest losses. In Tokyo, shares in Nintendo fell almost 13%, a movement from the profit taking following the sharp recorded rise since the launch of Pokemon Go application. In fact, since July 6, Nintendo shares rose from 14900 JPY (Yen) to 32700 JPY reached yesterday.
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