Anchor resume from 13 al 20 of October 2017
Friday, 20 of October 2017
This week focus
Finally the week has been concluded assisting to day in which the publication business results have been more followed than the updates of macroeconomic data.
Developments in equities have been widespread in both Europe and the United States, as the earnings release season is being frankly positive. From the United States we must highlight the good behavior of the Biotechnology and Healthcare sectors after publishing higher profits than the expected by the market. The other fact that pushed up the markets has been the implementation of a new legislative tool that will facilitate the approval of the tax law, which as we have advanced. This benefited the main US’s selectives and the currency, which went slightly up to levels of the 1,180 EUR/USD.
With respect to the European selective, the greatest beneficiary has been the DAX-30 which reached levels of historical highs, exceeding the levels of 13.000 despite the negative impact of the publication of quarterly results of companies Daimler and Roche. On the contrary side, the IBEX-35 has been penalized by the Catalan crisis, and therefore, the European selective EUROESTOXX-50 ended without making further progress.
At a politic and economic level, Europe hoarded the attention of the world, especially Spain beacuse of the latest developments that have been taking place in Catalonia, which led to the announcement that an extraordinary council of ministers that will be held tomorrow in order to apply the Article 155 which, with the approval by an absolute majority of the Senate, the Government might adopt the necessary measures to compel the CCAA to enforce its "obligations" or to protect said general interest. For now there are 915 companies that moved their headquarters outside of Catalonia.
Meanwhile, in the Eurozone, we are still waiting for the ECB's tappering decision during next Thursday's meeting. According to the Austrian Finance Minister, Hans Jörg Schelling, the actual QE levels should not be pulled over the by the moment. The positions remain distanced and there seems to be no consensus at the moment. The macro data also provided no further clues, as the consumer price index maintained the expected growth of +0,4%.
As we pointed out within the first lines, in the United States, the most important new has been the one pointing out Donald Trump's announcement regarding to the approval of a new legislative tool that would facilitate the approval of the tax law. Within the course of the week, the dollar became benefited from the growing excitement generated by Taylor's election as the new Fed’s chairman due to his hawkish stance. The appointment will take place at the beginning of November.
We also have the publication of the Beige Book from the Fed, which recorded a greater economic activity in the country during the month of September that has been maintained during the current month, starring the manufacturing sector and non-financial services. On the negative side, special emphasis was placed on the slowing down of consumer spending.
Finally, from the Asian continent, the main reference has been the 19th Congress of the Communist National Party in which the President Xi Jinping said that China's prospects were bright, but made a recognition of serious economic challenges. This meeting was also accompanied by the update of the GDP data for the 3Q2017, which reached rates of +6,8%, with the result that the stablished growth target of +6,5% for the current year seems achievable. From Japan, we will follow closely next Sunday's elections, in which Prime Minister Abe is expected to be re-elected for the third time in a row.