Anchor Resume from 17 to 24 of February 2017

Anchor Resume from 17 to 24 of February 2017


Flat closings in the main selectives, in a week where the focus was set on the French polls, the evolution of the Greek's rescue plan, and on the statements made by the US President Donald Trump.

In the Eurozone, we have been waiting for the meeting of the Eurogroup with Greece, which ended without reaching agreements to activate the last section of the rescue plan for the Hellenic country. Neither we have received news about the IMF's participation in the rescue plan, since they are reiterating the need to carry out a debt reduction in face of its unsustainability (we recall that in July 7,000 euros of debt will expire).

As for the evolution of the French elections, recent rises in the risk premium have reflected fears that right-wing nationalist candidate Marine Le Pen wins the elections. However, in the latest polls, Macron led the second round of the presidential elections.

In global terms, during the last week, the leading indicators of economic activity were published, which kept the expansion rates at their highest (55,5 vs. 55 expected), while confidence was deteriorated by the current political landscape.

The closures were reached without significant movements, the IBEX-35 lost the psychological support of 9.500 after falling down by -0,49%, while the DAX-30 closed with slight rebounds in the 11.800 (+0,40%), and The STOXX-50 in the 3.304 with no changes.

From the United States, during the last days, the expectations of a rise in rates increased. As Janet Yellen announced, such a decision will depend on the evolution of the labor market. However, the latest data did not shed much light on this issue since there were increases in new claims for unemployment benefits (current 244k vs. 238k earlier and expected 241k). Regarding economic activity, although the PMIs presented were below expectations, they maintained the expansion rates (54,3 current vs. 55 earlier).

The weekly balance in the US markets had no surprises, with a +0,70% in the S&P-500 (around the 2.367), while the Nasdaq Composite ended last Friday at 5.845 (+0,12%).

On the Asian continent, we listened carefully the statements made by the Bank of Japan president suggesting that the policy of controlling the yield curve is likely to continue, a factor that pushed the Yen down.

As a result of the economic evolution, there were further declines in the trade balance (1.084 bn current JPY vs. -625,9 bn expected JPY) against the +8,5% increase in imports. In contrast, the leading indicator rebounded to 104,8 from the expected 102,8, and the manufacturing PMI kept the expansion rates at 53,5.

The markets in Asia also closed without much variation, around the 23.965 (-0,28%) the Hang Seng, and at 19.283 (+0,25%) the NIKKEI-225.

As for commodities, the barrel of Brent remained at 55,99 USD/Brent pending further cuts to boost the price of crude. As for the gold ounce, new rebounds were recorded (+1,73%), ending at $ 1,256 USD/Onz.

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Market's from 17 to 24 of February 2017