Last Friday, European stock exchanges generally lost some ground at the end of the session after Donald Trump showered the optimism by stating that nothing is yet done with China, and that the conditions are not yet in place for a lowering of the customs surcharges already in place. Earlier in the week, the opposite rumor had helped drive the indices to the top. Wall Street did not stop rising, as if nothing could prevent the financial centers from moving forward.
To date, 89% of S&P500 companies have published their 3rd quarter results: three-quarters have exceeded analysts' expectations in terms of net income. This is higher than the recent average, although the last weekly delivery dropped this percentage from over 80% until then. Disappointments come from the energy sectors and especially from raw materials, which are always at the forefront of tensions on world trade.
The weekend was rich in political events. Bolivian President Evo Morales, after many ups and downs, eventually resigned. In Hong Kong, the weekend was again violent and two demonstrators were injured. In Spain, it will be very complicated to form a government, even if the socialists come first without having the necessary seats to govern. In the United Kingdom, the legislative campaign is in full swing and questions have arisen about Conservative Party funding from Russia.
In Iran, the authorities have announced that they have discovered a new oil field in Khouzestan, which could increase the country's reserves, which are already the fourth largest in the world, by a third.
Today's economic highlights
The day is a public holiday in several countries, but not necessarily a holiday in the financial markets. Important announcements include Italian industrial production and the first estimate of UK GDP for the second quarter.