Anchor Resume from 10 to 17 of February 2017
Monday, 20 of February 2017
Without significant changes in the markets, we concluded last Friday with the news that the IMF could participate in the Greek rescue plan with a contribution of 5.000 million Euros.
The selectives closed flat in the Eurozone waiting for further news to determine a new direction. The IBEX-35 recovered a +1,30% to the 9.500, while the STOXX-50 increased by +1,16% up to levels of 3.308, and the DAX-30 at 11.757 without larger variations (+0,77%).
The weekly balance, taking into account the macroeconomic perspective, was positive due to the new upswing in industrial production; Higher than expected (+2% compared to the +1,7% in advance), and an improvement in the trade balance (+28,1 billion). In contrast, the latest GDP update for the fourth quarter of 2017 was +1,7% compared to the +1,8% expected.
While at a political level, the various fronts that we have been identifying during the last few weeks remained opened. The ECB Minutes noted the negative impact that Brexit, the French elections, and policies implemented by Trump over the region could have. As well, the risk that could suppose for the Eurozone the strengthening of the Eurosceptic Five Stars Italian movement began to worry the investors and the members from the Eurozone.
Weekly developments in the US continued to show some BPAs surpassing expectations, with average earnings per share of +5,3%. That, along with Janet Yellen's statements in which she acknowledged the possibility of rate increases at the next March meeting, and the absence of negative news that slowed the trend in the markets, the selectives reached new levels of highs. The S&P-500 went up to the 2.351 adding a +5% of advances so far this year, while the technologic Nasdaq Composite did until the 5.838 adding a return of +8,46% Year to Date.
The US currency also benefited from the words of Janet Yellen, while the Euro was again the loser currency after registering new setbacks on its main peers. The EUR/USD pair was at the weekly closure at 1,0611 EUR/USD (-0,25%). On the contrary, gains were recorded on the pound, now at 0,855 EUR/GBP (-0,56%).
The publication of macroeconomic data so far seems to support the country's positive outlook after identifying new declines in the weekly data of unemployment claims (now at 239.000 people compared to the expected 245.000), as well as the rebound in the main published manufacturing indices and the price indicators (monthly CPI +0,6% vs. the +0,3% expected).
The Asian giant surprised Thursday's trading with rises about +9,5% as China's central bank doubled liquidity injections. As for Japan, developments did not appear so positive after a deterioration in annualized growth rates, which stood at +1% compared to the previous data of +1,4%.
The closures were mixed with gains of +2% on the Chinese selective Hang Seng, now at levels of 24.033 (adding up a +9% this year), while the NIKKEI-225 closed with slight drops at 19.234 (-0,74%).
In terms of commodities, crude oil remained within the trading range of the past few months, closing at 55.81 USD/Brent (-1,81%), while the ounce of gold maintained the 1.235 USD/Onz.