Anchor resume from 17 to 24 of March 2017

Anchor resume from 17 to 24 of March 2017


Markets closed last Friday's session with the eyes set on the United States. Doubts about Donald Trump's ability to apply the measures announced in his election program to the economy led to a major convulsion in the US parquets.

In fact, the disagreement within the Republican Party and their inability to pass the new health reform bill in the Congress could initiate a correction in the markets. At the moment, the weekly closings turned in red with drops of -1,44% in the S&P500 falling up to the 2.343, while the technological Nasdaq Composite went up to the 5.828 (-1,22%).

On the macroeconomic side, there were declines in the indicator of the US manufacturing activity, despite previous economic expansion rates (53,4 vs. 54,8 expected), so that the markets were not penalized. In this line, the latest data on new unemployment benefit petitions was worst than expected (current 258.000 vs. 240.000 expected). However, the Fed's vision remained unchanged, highlighting the strength of the labor market and the levels of growth achieved.

During the session on Tuesday, we followed the television debate of Le Pen and Macron. According to subsequent polls, Macron positioned himself as the winning candidate in the French elections. Likewise, Opinionway's latest poll gave the centrist candidate a second round victory with a 63% of the votes.

The Eurozone continued to show signs of positive growth. The composite PMI maintained and surpassed the expected expansion rates (from 56,7 vs. 55,8 expected) and new signs of inflation were registered with the rise in the labor cost index for the 4thQ (+1,6% today vs. +1,4% above).

The weekly market performance was mixed, with gains of +0,60% in the IBEX-35 rising to 10.309, while the DAX-30 and STOXX-50 closed flat around levels of 12.064 and 3.444 respectively.

Regarding the evolution of the Brexit, we have had the statements of the President of the European Commission. This time he stressed the need to toughen the negotiations with the United Kingdom, so that the rest of the members do not find any benefit in proposing departures from the whole. However, we do not expect agreement to be reached in the negotiations until the next Eurogroup meeting on April 7th.

As for currencies, the pound become slightly benefited by the rebound in the inflation levels at the UK, closing at 0,8654 EUR/GBP. While the Euro posted new gains against the Dollar, now at 1,0797 EUR/USD.

In Asia, we emphasize the declines in the Japanese selective before the bad data published throughout the week. Wholesale sales indicators fell down again by -1,7%, as manufacturing expansion rates fell up to levels of 52.6.

The closures were mixed for the Asian continent, the NIKKEI-225 went down up to the 19.262 (-1,33%) and the Hang Seng closed positive at 24.358 (+0,20%).

In the commodity market, crude oil remained around the 50 USD/Brent despite the weekly declines (-1,85%). While the gold rebounded to the 1.243 (+1,25%).

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