Anchor resume from 13 to 20 of July 2018
Monday, 23 of July 2018
This week focus
The markets were attentive to the summit between US President Donald Trump and Russian President Vladimir Putin, which dealt with security issues, the rapprochement between the two countries was the intention to cooperate against terrorism and ensure security cybernetics. For its part, trade tensions with Europe worsened with the intention of the European Union to impose tariffs on the importation of American products such as chemicals and pharmaceutical products in retaliation for Trump's protectionist measures.
In this regard, the International Monetary Fund warned that a commercial escalation could reduce the global GDP by 0.5%. At the moment it maintained its forecast of growth at the aggregate level by 3.9%; however, for the Euro Zone, it has reduced its projections by two tenths to 2.2% by 2018; for the United States it maintained the forecasts given the solidity that reflect the current data driven mainly by domestic demand and investment, together with a strengthened labor market. For the month of June, retail sales increased 0.5% in line with analysts' expectations, while requests for unemployment subsidies continued to fall.
The IRR of the 10-year bonds of the United States increased by 1.6bps, reaching a rate of 2,847%, given that domestic demand is the main driver of that country's economy, in addition to Jerome Powell's statements before the economic committee of the Senate, strengthened forecasts of further increases in interest rates by the monetary authority.
With regard to business results, in the United States only 5% of companies have reported, of which 73% have exceeded estimates, while in Europe 16% have presented their benefits to the public, which have Been below expected on average. Note the disappointing result of Netflix in number of subscribers, although its benefits were increased, as well as the eBay technology that reported benefits below estimates. For its part, Microsoft presented results above expectations, improving net profit by 19%.
Thus, the European markets ended the week in mixed terrain, the IBEX35 at around 9,760 points with a decline of -0.62%, the DAX advanced 0.31% to 12,579 points, while the EUROSTOXX50 did not register greater variation on the 3,450 points.
Similar behavior took the US market, the Dow Jones advanced 0.18% around the 25,064 points, the S & P500 gained 0.11% compared to the previous week while the Nasdaq fell -0.32%.
For its part in Asia, the Hang Seng fell -1.03% to levels of 28,230 points, while the Nikkei225 ended in positive territory at 22,697 points (+ 0.44%).
In the currency market, the strong expectations of increases in interest rates by the FED have motivated a new rebound in the dollar against its peers, especially against the Chinese yuan which reached levels of 6.80 throughout the week; while the EURUSD pair ended around 1.1641 dollars per euro (-0.38%). Meanwhile, the recent strengthening of the American currency has sunk in the prices of commodities; Brent reference oil fell to USD 72.58 / Barrel, while gold ended the week at USD 1,222 / oz.
Thus, for the next days the currency board will focus the attention of investors to mark the rhythm of the markets.