Market's evolution 31 of August to 04 of September 2015
Monday, 07 of September 2015
The week was again marked by volatility in financial markets caused by events in China, as well as the US macro data and published statements by Fed members regarding the possible rise in interest rates. After the G-20 took place during the weekend, it revealed concerns about the crisis in the main Asian power and commitment of the participants showed for maintaining global economic recovery. The problems that would have on the economy a rate hike in the US and imbalances that could cause wear that were carried out new expansionary monetary policies were also stressed.
The focus in Europe was put in the words of Draghi after the ECB meeting. On this occasion, he said that the slowdown in emerging countries adversely affects the Eurozone and announced a lifting of the limit of QE for the program of asset purchases (+ 33% from + 25%), as well as a possible extension of program beyond September 2016 growth forecasts for the euro zone for 2016 (to + 1.4% vs. + 1.5% expected previously) and inflation forecast (at + 0.1% vs was further cut to 0.3% above).
The week in the United States was marked by the publication of the Beige Book from the Fed in addition new data about employment difficult to read, which include a reduction in the unemployment rate (to + 5.1% from + 5.3%). In the new publication of the aforementioned Beige Book, it revealed that growth is moderate and can be undermined by the weakness of the Chinese economy.
In Asia we are still awaiting the release of new economic data reference China. Uncertainty about the possible slowdown in the second world power has returned to dominate markets throughout the week. Financial activity in the region was paralyzed Thursday and Friday with the celebration of the end of the 2nd World War.
The European equity market ended the week with significant cuts, with the selective IBEX35 suffered the biggest drop (-5.13%), while cuts in other indexes ranged between -2.53% for the DAX and -3.24 in EUROSTOXX50. The trend was not different in the US stock markets, which also closed in negative territory with falls of up to -3.40% for the S & P500.
USD in the forex market was the great favored by trimming expectations for growth in the Eurozone along with the weakness of the Chinese economy. However, the fluctuations were high (between 1.1331 and 1.1086 the EUR/USD) given the uncertainty of the rate decision the Fed.
No major changes in the commodities market despite high variations that have occurred in the price of a barrel of Brent (fluctuating between 47.74 and 54.32 USD/Br.).