Market's evolution 02 of November to 06 of November 2015
Monday, 09 of November 2015
Publication of business results, economic data and interventions of central banks conditioned the week again.
New global activity indices were released, and we observed that the Eurozone remained having a moderate growth in October. In the statements, Draghi reaffirmed his willingness to carry out the necessary steps in order to combat the low inflation levels and the slower growth with the aim of removing such risks.
In the US, the indicators of manufacturing and services activity continued improving, it was revealed important data concerning the labor market. These data showed the creation of 271.000 jobs (above the 185.000 expected) and a reduction in the unemployment up to a +5%. And, although labor costs have been lower than expected, the improvement over the previous data has been substantial. This could lead to Janet Yellen and various members of the Fed to raise rates in December.
On the other hand, the Bank of England, ruled out the option of keeping up interest rates unchanged at +0,5%. Growth forecasts had been reduced up to a +2,7% and they said that they did not expect to achieve the inflation target within two years.
With regard to Asia, following the disclosure that would take place with the connection of financial markets in China and financial market reform, financial markets benefited about that with great rises in the equity of country. As a counterpart, recent activity data remained below the level of expansion, leading many economists to announce the danger of a sharp slowdown of the giant.
Widespread advances in the weekly market closures despite the negative effect left by the deep cuts suffered by the stock of Volkswagen after the new cases of irregularities detected in the emissions of gas in the cars of the company. Such rallies, reached a +1,45% in the European benchmark Eurostoxx50 and a +1,26% in the German DAX, which closed at levels of 10,988.
On the other hand, American parquet markets retreated positions in the midweek after the statements made by the president of the FED. Despite this, the major indices closed in positive territory with slight gains over the +1%.
In Asia, progresses were made in the Nikkei225, which is around the 19,265 after scoring an increase of +0,95%.
New kicks in the EUR after the messages launched by the President of the ECB and the growing expectations of rate hikes in nearby US According to Goldman Sachs analysts, the EUR/USD could reach levels of 1,05 before the year ends. Throughout the week, the pair has fluctuated between levels of 1,10 and 1,07 EUR/USD.
As for commodities, loses ground oil prices hovering around 47 USD/Brent despite falls in production. In the same way, the value of the gold suffered a setback close to +5%, trading around the 1.088 USD/Oz.