Anchor resume from 26 of May to 2 of June 2017
Tuesday, 06 of June 2017
After enjoying a festive Monday in Barcelona, we have started the month of June, a month during which we will witness numerous references at a macroeconomic and political level. Especially the meetings of the main Central Banks; The European Central Bank during Thursday 8th, and the Federal Reserve on Wednesday 14th.
During the last days we have been able to count on important data that have conditioned the evolution of the markets.
We followed closely the statements made by Mario Draghi from the Eurozone. His words, which pointed to the strength of growth and greater stability, raised expectations so as to reduce the existing bias among members of the ECB when discussing a reduction in monetary easing. In addition, the published macroeconomic data set favored the performance of the equity markets and the Euro. Highly expansive rates (at maximums) were recorded in the advanced data of manufacturing activity (current and expected), benefiting from the recent expansion in production rates and new orders.
While among the factors generating uncertainty, we are especially following the possibility that Italy faces general elections in September, and the difficulties that Greece is facing in order to conclude with its creditors the conditions to receive the aid funds.
Thus, the closures, were settled with the main selectives in green, being supported by a solid growth of the economy. The DAX-30 went up by a +1,75% up to the 12.822 (levels that coincide with the upper part of the bullish channel). For its part, both EUROSTOXX-50 and IBEX-35 closed flat; Around 3.591 the first one, while the second made it so at the gates of the 11.000.
From the United States, the new data published conditioned the markets, pending on the effect they could have on the Fed’s interest rate decision. For the moment we still do not see consensus on whether one or two more rate increases will be made during the next six months. In this line, in the minutes published by the Fed, the moderation of the activity was attributed to the political factor.
Against this background, the main selectives ended the Friday’s session in positive, with advances of +1,54% in the technologic Nasdaq Composite up to 6.305, and of +0,96% in the S&P-500 ending at historical highs levels in 2.439. While the currency was penalized by the strong growth in Europe and growing doubts about the strength of the policy of US President Donald Trump. The EUR/USD ended the day of the week at 1,1280 EUR/USD (+0,88%).
In Asia, the psychological level of the 20.000 in the NIKKEI-225 were surpassed by the recent rebound in the last PMI manufacturing data to 53,1 (from the previous 52,7) and the improvement in retail sales. While in China, the important manufacturing activity data PMI Caixin fell again to contractive levels (49,6 below the border of 50). However, the main selective went up by a +1,11% up to levels of the 25.924.
As for the commodities, the crude lost the levels of 50 USD/Brent again attending to the possibility that the US production rates will increase, pushing down the price of raw material.