Market's evolution 04 of April to 08 of April 2016
Monday, 11 of April 2016
The topic that monopolized the headlines over the past week were the papers from Panama, already considered one of the biggest leaks of documents in history. Thousands of individuals with assets in companies located in tax havens were revealed.
Although the commotion created after the publication of these documents, this did not have an excessive impact on the markets since the issues that continued concerning were the inability takeoff of economies, the weakening of China and the departure of UK of the European Union. We note however, the rebound of the manufacturing PMI despite that the Eurozone economic sentiment become deteriorated (last data in 103 levels with respect the previous 103,8) given the strong correlation indicator to economic activity in the region.
Janet Yellen from the United States continued to support the strategy carried out by the FED and the results obtained with the policies implemented. Despite the criticism of Donald Trump blaming the Federal Reserve to be creating financial bubbles without obtaining clear results, Yellen defended his policy highlighting the strength of the labor market. Even so, the circumstances are not conducive to reviving the economy, since according to Bloomberg data, corporate earnings Americans could suffer the biggest losses in six years mainly due to the fall in oil prices. As well, the significant drop in inventories wholesalers (-0,5%) could advance a greater slowdown than expected.
In Asia new reassuring messages claiming Chinese Premier again signs of improvement in the economy of the giant. In the same vein the analysis published by Fitch in which rule out a forced landing in China because of the number of tools that owns the Central Bank to counter stood eventualities.
In the financial equity markets falls were widespread except for the FTSE100, since the selective benefited from the sharp rise in oil prices. However, the falls suffered in the IBEX 35 were of -2% closing the week at 8.427 weekly breaking down support levels, while falls were the German DAX -1.76% around the 9,622.
In the United States cuts were of -1,30% in the Nasdaq Composite (now around 4.850) and -1,20% in the S & P500 (at 2.047 levels). In the same vein the Japanese NIKKEI225 with selective cuts -2,12% being the next important support point of the 15.700.
As the currency market the euro continued to gain ground both the dollar and the pound, closing at levels of 1,14 EUR/USD 0,8062 and EUR/GBP.
Regarding commodities, the price of Brent went up by +8,50% closing at levels of 41,94 USD/Brent. We expect major fluctuations during the week until the meeting of oil producers next Sunday to take place.