Anchor resume from 3 to 10 of November 2017
Friday, 10 of November 2017
This week focus
Profit collections have been widespread within the equity markets, both in Europe and the United States. These setbacks are not surprising, especially given recent advances and tight valuations.
Throughout the week we have followed closely the tour of the president of the United States through the Asian continent, the holders have been immediate. Some of them were more constructive than others, among which we highlight the warnings to North Korea stood out urging the cessation of tests with nuclear weapons. On the other hand, the Japanese Prime Minister Abe announced the advance in trade issues with the United States and defense capacity thanks to the purchase of military equipment to the US. From China, the meeting that the two leaders (Xi Jinping and Donald Trump) held during the Friday, in which they addressed the current geopolitical conflicts and measures that should be implemented to boost global economic growth, has been described as successful.
Regarding the macroeconomic evolution of the North American region, we highlight the data referring to the labor market, especially the pickup in JOLTs surveys of job offers since they showed increases in the demand of workers (now in 6.093 million). While in the parks of the country, although they followed the wake of the historical highs that the giant Apple scored after beating its profit forecasts, so it reached new historical highs, the positive trend was followed by the selective S & P-500 . However, this was truncated by the Republicans' rejection of the tax reform proposal presented by Donald Trump. Given that the advances of the selective Americans have been supported to a great extent by the implementation of this fiscal reform, the doubts about the capacity that President Trump has when implementing the promised measures.
The week has not been much better in the European markets, where corrections have been widespread. The Ibex-35 fell to 10.130 losing important support levels penalized by the Catalan crisis. The Dax-30 for its part, managed to stay above the 13.000 and we hope that the next days are consolidation of these levels. While the Eurostoxx-50 for its part, broke the area of 3.650 in false to return to levels of 3.600, maintaining the long-term bearish guidance despite the GDP growth forecasts published by the European Commission rose to +2,3% for the year of 2017.
Growth forecasts continue to be positive for the Euro region, especially during October, after registering strong growth in new orders and a higher hiring of workers reflected in the upturns up to levels of 56 in the composite PMI indicator. Following this line, the Markit boss maintained the vision of positive growth. Investor confidence remained at maximums and retail sales rose +0,7%. On the contrary, the advance in the season of publication of results has not been so positive, since only 53% of the 283 companies that have already published results in the Stoxx-600, have been able to beat BPA forecasts.
Likewise, important macroeconomic data were released in the Asian continent, among which we highlight China's consumer price index, which rose by +1,9% with respect to the +1,8% expected and the previous +1,6%. While in Japan, the leading indicator of the services sector paid special attention after reaching expansionary rates of 53 (vs. 51 above).
The commodities market a missile launched by Yemenis overflew Riad (Saudi Arabia) favored the recent spikes in the price of the black gold, since the country accused Iran (supplier of weapons) of the incident increasing tensions within the region. In this way, the Brent barrel continued to advance to levels close to 64 USD/Brent.