Anchor resume from 16 to 23 of March 2018
Friday, 23 of March 2018
This week focus
English Central Bank,
The meetings of the central banks of United States and England captured the attention of the market. As anticipated, the FOMC increased the Federal Reserve interest rates to the range of 1.5% to 1.75%. The monetary authority recognizes that the economic indicators have advanced more dynamically than expected, increasing their growth forecast to 2.7% by 2018.
Although the markets had widely discounted the decision, the new projections and the language used by Powell have led investors to think of a more aggressive monetary policy than expected at the beginning of the year; However, for the tranquility of the markets Powell announced that the entity does not foresee inflationary pressures in the economy.
For its part, the Central Bank of England decided to keep interest rates at the current levels of 0.5%, at the meeting two of the nine members of the committee were in favor of an immediate rate increase to control the price increase ; thus, things are expected in May, the monetary entity assumes a more rigid position.
If so, the tightening of the monetary policy of the BOE would take place in the midst of the negotiations of Brexit, but Mark Carney, governor of the entity, does not show concern about this situation as the negotiations are on track and The extension of the transition period to 21 months will allow a smoothed impact on the economy. After the announcements, the pound sterling appreciated to levels of 1.1456 / EUR.
At the political level, the commercial decisions of the US administration keep investors alert globally, after learning that the United States could impose tariffs on imports from China, and how China's response would also increase its tariff burden on China. the products coming from the United States.
The commercial tensions have led the stock indices to register important setbacks while volatility returns to be protagonist in the trading sessions, the VIX index increased more than 45% from one week to another while the weekly falls on Wall Street they were in the order of -4% in both the Dow Jones and the S & P500. For its part, the Nasdaq deepened its fall to levels of 7,160 points (-4.3%), burdened by the sharp fall in Facebook (-10.9% weekly), following the scandal for the improper handling of data of its users, information that had been used for political purposes, the collapse dragged other technology from the North American market.
Asian markets also recorded generalized declines, the Nikkei225 ended the week at 20,617.8 with a weekly decline of -4.88%; while the Hang Seng ended the week at 30,309.2 (-3.79%).
In Europe, we have mixed references. On the positive side, the European Central Bank, in its last bulletin, improved its outlook for growth based on employment figures and better consumption dynamics; It was also known that the United States excluded the European Union from import duties on aluminum and steel, which maintains the harmony between the trade of these two economic blocs, and was applauded by the exporting countries of the region.
However, macro publications were below expectations; January's balance of trade was 19.9Bill Eur (Previous 25.4Bill Eur, estimated 19.9Bill Eur), the preliminary composite PMI was 55.3 (Estimated 56.7), while the confidence index also fell against the previous month (Current 13.4, previous 29.3).
Thus, the European stock markets fell in a generalized way, the Ibex fell 2.85% around the 9,487 points, the DAX -2.7%, the Eurostoxx50 -2.6% while the FTSE100 suffered a fall of -2.95% to finish around at 6,952 points.
The strong movements in stock markets motivated investors to take positions in treasures of the United States that ended with tir of 2.832 to 10 years, and in Gold that ended the week around 1.328 USD / ounce. On the other hand, the reference oil Brent, ended the week at levels of 68.9 USD / barrel driven by the surprising decline in inventories in the United States (-2.6 million barrels).