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Current Futures: Dow +29.00, S&P +4.00, NASDAQ +8.25
European markets continue to struggle below the break-even line, as the major indexes from the Euro-zone region opened again lower, and held lower on Wednesday, even though U.S. futures advanced and Asian markets closed mixed on the Wednesday trading session.
The financials continued to advance in Europe, similar to the trend set during the Asian trading hours. The gains in the financial sector came after Goldman Sachs announced that it would pay the TARP loan on Wednesday, being the first major bank to do so. Further optimism was induced in the financial sector after JPMorgan and Morgan Stanley announced they will no longer issue debt backed by the FDIC, while other banks are expected to announce similar measures soon. TheLFB-Forex.com Trade Team notes that the news coming recently from the financial sector is very positive, something that will probably be reflected in the XLF index, the exchange traded fund for the U.S. financial sector.
Commodity stocks and retail companies were among the sectors that declined in Europe this morning. Commodity stocks continued their downwards path, as some investors consider the current valuation as too expensive. Retail companies declined after Unilever, one of the largest European makers of consumer goods, was downgraded to “sell” by UBS. Moreover, TheLFB-Forex.com Trade Team argues that the whole retail sector is projected to under-perform the major stock market indexes, as the unemployment rate is set to soar to multi-year highs in Europe and in the U.S.
Overnight, the U.K. Ftse lost 9.84 points (0.23%) to 4,318.73, while the German Dax declined 13.31 points (0.27%) to 4,877.41.
Crude oil for July delivery was recently trading at $71.05 per barrel, higher by $0.50.
Gold for July delivery was recently trading higher by $5.30 to $937.50.
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