Anchor resume from 9 to 16 of June 2017
Monday, 19 of June 2017
The central banks marked the evolution of a week in which no data of special relevance has been published.
Following the latest publication of the FED’s Beige Book, which spoke of "modest" or "moderate" growth in the economy, and the slowdown in recent macroeconomic data, all the attention was set on the words of Janet Yellen during the open market meeting that took place during last Wednesday.
As the market anticipated, the Federal Reserve continued the process of normalization after increasing by 25 basis points the reference rates, now within the range [1% - 1,25%], and leaving the door opened for further rate hikes for what remains of year. And although Janet Yellen did not set a date, she announced the start of stimulus withdrawal, which could begin in October. The forecasts were optimistic, growth is expected to remain positive (+2,2% in 2017), and the unemployment rate is expected to continue to decrease (with a target of +4,3% by 2017) and inflation rates increasing.
The closures were mixed; While the S&P-500 closed the session at 2.433 (-0.90%) below the resistance located at 2.500, the Nasdaq Composite did so by correcting a -0,90% penalized by the falls suffered by the shares from the Technological sector. As for the EUR/USD pair, the US currency remained at 1,1197 EUR/USD unchanged despite the announcement of withdrawal of stimulus announced by the Fed.
From the Eurozone, we closely followed the meeting of Greece with its creditors, after which they released 8.500 million euros that will allow the country to face the important debt maturity that will take place in July. On the contrary, no agreements had yet been reached to carry out a removal of the Hellenic country's debt.
As for the meeting of the BOE last Thursday, the reference rates remained unchanged. On the contrary, three members of the Committee voted in favor of a rate hike, which benefited the pound anticipating a change in the direction of the monetary policy. The EUR/GBP reflected it with a slight rebound of the pound, now at 0,8755 the EUR/GBP. Also, during this week, we will attend to the meetings of the Eurozone with the UK in order to start the Brexit process.
Macroeconomic data continued to support the good performance of the region. Investment confidence maintained its positive trend, and the industrial production went up by +1,4% (surpassing forecasts of +1,3%). However, the main selectives ended the session in red with setbacks. The IBEX-35 was the benchmark that suffered the biggest drop (-2%) to the 10,759 levels, while the EUROSTOXX-50 fell by -1%, unable to break the 3.650 levels, while the DAX-30 did so in the 12,752 (-0,46%).
From the Asian continent, we also have the BOJ’s meeting, after which the monetary policy defined with reference rates remained unchanged at -0,10%. However, the outlook was positive for private consumption and the recovery of the economy, a very positive factor after the last GDP data that fell to levels of +1%.
Asian selectives ended the week also with falls, of -1,55% in the Hang Seng up to 25,626 despite the +10,7% increase in retail sales and a +6,5% increase in industrial production rates. While the NIKKEI-225 did so at 19,943 (-0,35%).
In terms of commodities, oil fell for the fourth consecutive week to 47 USD/Brent (-1,62%) after that the OPEC published forecasts where the supply of crude oil was expected to grow, pushing down the price of the oil. As for the ounce of gold, it finished the week around 1,253 USD/Onz after suffering corrections of -1%.