Profitability Reports of our clients from July 2016
Tuesday, 30 of August 2016
The evolution of markets throughout the month of July was generally positive.
UK: In Europe the main concern was focused on the evolution of the English country, where evidence of slowdowns in the economy for the short term was put away.
- Quarterly growth levels surprised upside (+0,6% quarterly rate) and although indicators remained in contractionary levels, evolved better than expected (now around 49,1).
European Union: in the last Eurogroup meeting, Draghi sent a message of reassurance in response to the "good behavior" that markets have shown after the Brexit. He added that new stimulus measures will not be introduced until autumn despite expectations that low price levels remained even in the long term.
- Levels of growth maintained the positive path; keeping expansive levels within the main leading indicators, as well as retail consumption with positive rates and rises in price levels.
United States: from US we have followed closely the evolution of macroeconomic data, since the rate decision from Fed depended mainly from the achievement of the targets set for inflation and labor market.
- In the statements made by Janet Yellen (president from the FED) a rate hike was discarded because of the weak growth levels (+1,2% quarterly data vs the expected +2,6%).
Asia: the focus was placed on the new cases of defaults on bonds, among some of them, the shipbuilder Wuhan Gouyu. In Japan, however, concerns are now set on the new stimulus measures implemented.