Anchor Resume from 24 of February to 4 of March 2017
Monday, 06 of March 2017
Mixed closures within the main selectives after a week in which the business results have passed to the second plane. In fact, we counted with important macroeconomic data, but it was the statements made by Donald Trump and the appearance of Janet Yellen late Friday which focused the attention of investors.
The words of the American president had a direct impact on the markets. The announcement of a billion dollar infrastructure plans and the optimism shown by Trump seemed to please the markets reaching new record highs. The Dow Jones jumped up to the 21.000 after scoring a +0,88%, while the S&P500 closed around the 2.383 (+0,67%).
The declarations of the different members from the Fed, anticipating further rate hikes, especially those of Lael Brainard, who had maintained a dovish stance, caused rebounds in the US bond TIRs. So that caused that in the latest survey, the probability of rate hikes at the next EDF meeting rose up to the 84%. In the same line, Janet Yellen after the appearance last Friday left the doors opened to a new rate increase, so we will have to wait until next Tuesday 14th to know the decision.
The latest published macroeconomic data continued to support the positive view shown in the latest update of the Beige Book. Weekly claims for unemployment subsidies stood at 223.000 from the expected 243.000, as the manufacturing ISM rebounded to 57,7 vs. expectations of 56 at broadly expansive rates (above the reference levels of 50).
In its latest report, Markit highlighted the sustainability and strength of growth in the Eurozone. In this line, unemployment rates remained at +9,6% and manufacturing activity data continued at highs (current and expected 56). Also, as expected, price indices reached the ECB target of + 2%.
In political terms, we ended the week with the latest polls in the French presidential election, which ranked Macron as the winner in the first round with 27% of the votes and +63% in the second round. This led the main European selectives to turn upward, ending the session within the 9.798 IBEX-35 after registering a +3,65%, in the 12.027 DAX-30 (+3%) and in the 3.400 STOXX- 50 (+3%).
The evolution was not so positive in the Asian continent. Manufacturing activity levels were slightly deteriorated in Japan (current 53,3 vs. 53,6 expected and 53,5 earlier), as consumer confidence was below expectations of 43,5, now at 43,1. As for China, the decline in activity in the services sector (current 52,6 compared to 53,1 in the previous year) weighed on markets, which fell by -1,72% in Hang Seng ( Now at 23.552) and slight progress on the NIKKEI-225, now at 19.469 (+0,96%).
No changes in the price of crude oil, which seems to remain in the range of 55 USD/Brent and -1,78% drop in the price of an ounce of gold, now at 1,234 USD/Onz.
During the last week the euro recovered positions on its main pairs, the EUR/USD ended around 1,062 while the EUR/GBP did around 0,864 after the common currency was close to a +2 %.