Anchor resume from 16 to 23 of June 2017

Anchor resume from 16 to 23 of June 2017

Ana Martínez

The inability to keep the price of the crude oil stable and the last falls in the price of the commodity, pressed downwards the evolution of the main selectives at a global level.

However, despite declining to 44 USD/Brent levels throughout the week, the commodity ended last Friday’s session recovering its support levels of 45 USD/Brent following the statements made by various OPEC members who advocated for further cuts within the production quotas.

The closures in the Eurozone became flat in a week in which the advance of the data about manufacturing activity had been updated. These continued showing improvements and beat market expectations, now at 57,3 compared to the 56,8 expected and the previous figure of 57, maintaining the expansion rates, a factor that would anticipate further growth of the economy.

At the same time, the negotiations between the European Union and the United Kingdom began, after which we have heard about the possibility that the departure of the United Kingdom could not be effective finally. However, there are those who anticipate a Hard Brexit, others a Soft Brexit, while as we have advanced, some others discard that the exit will be finally effective. Even so, we must not lose sight of the discontent among the British population and the deterioration of the latest data published in the region, factors that could condition that decision.

In the United States, on the other hand, the week had a positive evolution in the equity markets, especially in the technological Nasdaq Composite which went up by a +1,84% benefited by the advances made in in the technological sector. The S&P-500 however, finished flat at levels of the 2.438.

Investors followed closely the statements made by the different members of the FED, which continued to present discrepancies. The reason is found in the mixed signals that had been observed in the published macroeconomic data (labor market near full employment and weak inflation), which will make quite difficult the FOMC’s task.

Finally, the draft of health reform had been presented. Contrary to expectations, it followed a more moderate line than the previously announced, benefiting the Healthcare sector. As for the published macroeconomic data, the manufacturing PMI showed a new deterioration after falling to levels (still expansive) of 52,1 compared to 53 anticipated by the consensus of analysts and the previous data of 52,7.

From the Asian continent, we highlight the moderation of the growth of manufacturing activity in the region to rates (still expansive) of 52 (below the expected 53,4). In terms of exports, they also experienced growth that was lower than the estimates (+7,5% current vs. +14,9% expected). With this, the Japanese markets ended the week with their main selective NIKKEI-225 recovering its levels of 20.000 scoring a +1%.

While in China, MSCI announced that Chinese stocks will be included in its emerging index, which could lead to new gains in the country's main index. The weekly closures, on the other hand, became flat at around 25.670.

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