Market's evolution 16 of November to 20 of November 2015
Monday, 23 of November 2015
A tragic weekend marked by the terrorist attacks in the streets of Paris, preceded a shaking week with further attacks and threats that involved the eviction of the Justice Palace of Belgium as well as the declaration of state of emergency in the country, football matches suspensions and cancellations of international flights.
Despite those unlucky events, markets endured the downpour in a week in which the macro references week for the Eurozone were scarce.
Note the inability with which the ECB is to give the necessary impetus to price levels (located on levels + 0.1%), so that the statements made by Mario Draghi and the minutes published by the ECB attended the need for new measures to carry forward these levels in order to eliminate the growing deflationary risks. Some of the effects that this could have, as pointed BBVA chairman after the current situation of low interest rates levels, is that in Europe new consolidations between banks will take place after the deep cuts that the margins of the companies from the sector have suffered.
From the US, we were able to meet the economic outlook in the minutes of the Fed meeting and with the subsequent statements made by some of its members. We did not get answer to the question that comes to the market regarding a rate hike in the US, but there were more members that highlighted the danger of postponing the normalization of types.
Contrary to what one might expect, the statements of various members of the Fed for raising rates, were positively received since if this action took place, this would show the smooth running of the economy.
The Bank of China, took new measures that consisted of further cuts in interest rates on loans offered to banks in order to boost lending. Moreover, as we talk about months ago, it has launched the initiative to strengthen the construction of new infrastructure, factor that favored the country selective.
Advances for the main worldwide indices despite the destabilizing factors existing on the market. In Europe, the progress was up to +3,77% for the DAX closing about 11.119, followed by EUROSTOXX50 with an increase of +2,69% (now, at levels of 3.452). In the negative side, the sectors related to tourism and the airlines were negatively affected. Progress also widespread in the US of +4% for the NASDAQ100 and +3,22% in the S & P500.
Regarding currencies, the EUR lost ground against the USD with the growing evidence that the normalizing rates in the US will take place soon, as well as statements of Draghi pointing to the need for further stimulus measures, the pair trades around the 1,0643 EUR/USD and the weekly decline has been of -1,25% on the price of common currency.
New developments in commodities include oil, which after trading in a strip of 45 and 43 USD/Brent ended the week even at low levels (around the $ 44,66 / Brent) scoring an increase of +2,40 %. Gold however, did not revalued despite the existing instability in the global economy.