Market's evolution 09 of November to 13 of November 2015

Market's evolution 09 of November to 13 of November 2015


Political noise and further falls in the price of some commodities weighed the markets last week.

One of the most important events during the week has been the start of the independence process that was held in the Catalan Parliament after the union of the deputies of Junts pel Si and the CUP. By the way, Rajoy decided to bring in front of the Constitutional Court the process started. The uncertainty generated as a result of these events, took some of the rating agencies to downgrade the rating of Catalonia to junk bond.

For the rest of the Eurozone, were the new statements made by Mario Draghi pointing out new measures to help the recovery of price levels that marked the week. In the ECB meeting with the Central Banks of Latin America, the performance of Europe was evaluated positively.

Wait and see, was the headline with which John Williams Fed marked the beginning of the week to support the rate hike in December and waiting for new economic data. Some of these data were published last Thursday and dragged down the main selective given the increase in the pressure that occurred in the US labor market after the published data. Investors anticipated rate rises next month although in the statements made by Janet Yellen no allusions to issues of monetary policy were made.

In Asia, China was again the destabilizing factor of the week. In a new statement OECD we knew bad expectations about the Asian giant after declaring that the measures undertaken in the country are not sustainable in the long term. In the same way, they unveiled a disappointing figures on the trade balance following the sharp fall in exports and price levels were below than expected. Conversely, good macro data in Japan that supported an improvement in growth.

Further cuts in financial markets after the sharp cuts suffered by the oil price which is listed on the levels around 47,42 USD/Brent (-8,38%). New data growth in crude stocks led declines in the price per barrel, weighing on the energy sector and those more influenced by commodity indices.

Closures in Europe falls -3% above levels reaching 3.360 (-3,15%) the EUROSTOXX50, and around 10,111 in the case of the IBEX 35 (-3,32%) also affected by poor corporate results among which highlight the Repsol oil company.

In the US, the cuts were greater than in Europe of up to -4,45% for the Nasdaq100 which fell to levels of 4.502, while the S&P500 recorded falls accounted for -3,70% closing at levels of 2.023. In contrast, the weekly balance for the Japanese index NIKKEI225 was positive scoring a +1,71% and closing at levels of 19.596.

With respect to currency markets, despite the EUR/USD came to suffer cuts over the week reaching levels of 1,0673 EUR/USD, the weekly close was flat without major changes. Note however, further cuts of about a -1% in the EUR/GBP after Draghi's statements.