Anchor resume from 20 to 27 of April 2018

Anchor resume from 20 to 27 of April 2018


The strong reactions of the markets to the economic and political agenda were the constant during the week. Investor attention focused on the ECB's monetary policy meeting and corporate earnings releases. However, the main catalyst was the responsibility of the United States with the increase in yields of the treasures to 10 years.

At the monetary policy meeting, as expected, the ECB did not announce changes in its current interest rate and decided to maintain its asset purchase program reiterating that if necessary, it would be extended until reaching a sustained inflation adjustment. In the statements after the decision, the president of the entity, Mario Draghi showed no concern about the recent data suggesting a slowdown in the growth rate and maintains confidence that inflation will continue to seek the target despite the recent underlying data. In this sense, he considers that the risks to the economy are on the side of protectionist measures and commercial conflicts.

Following the ECB announcements, the euro depreciated against its main peers ending the week at levels of 1.21 against the USD, which represents a weekly variation of -1.51%, while the EUR / GBP in a daily movement fell -0.93% difference At the end of the week, it was flat as a result of the disappointing UK growth data, which registered an advance of 0.1% in the first quarter (expected 0.3%).

For its part, the North American currency not only recorded appreciations against the euro, but also against the Yen, these movements were supported by the increase in the yields of 10-year Treasury bonds above 3%, levels that had not been achieved. for four years.

The rebound of oil due to the possible sanctions against Iran and the possibility of extension of the supply agreements by the producing countries, have been the main factors that have led investors to discount a rapid increase in inflation. translated into the aforementioned rise in the American bond, at the end of the week the Treasury 10 years gave slightly to levels of 2.99%.

Thus, once again, the fear of an inflationary upturn marked the pace of the market, downplaying the business results that, in general terms, continue to surprise positively. About S&P500 companies close to half have already published their earnings, of which 80% have been above expectations, led by sectors such as healthcare and technology. Nevertheless, the main American indexes ended the week in red; the Dow Jones closed around 24,322 points -0.57% while the S & P500 dropped -0.12%.

In Europe the markets added gains, the IBEX35 ended the week around 9,927 points + 0.22%, the CAC 40 did it at levels of 5,453 points + 0.75% while the DAX closed flat around the 12,590 points. In London the FTSE100 gained 0.72% reaching 7,421 points.

In Asia, we have mixed closures, the Hang Seng gave -1.35% to levels of 30,007 points, while the Nikkei 225 advanced 0.71% to 22,319 points and the Sensex 0.87%. Dispares were also macro publications, in Japan retail sales had a variation of 1% below expectations (expected 1.5%) while the core CPI of Tokyo had an interannual variation of 0.6% (expected 0.8%), which keeps the Bank of Japan in its current monetary stance.

In the commodities market, oil continues its upward path to levels of 74.74usd / barrel, which represents a variation of 11.7% so far this year, while gold ended the week at levels of 1,316 USD / Ounce.

For the next week we will be attentive to the final PMI publications and the preliminary GDP of the Euro Zone. In addition we will have the monetary policy meeting of the Federal Reserve, although no changes in the rates are expected on this occasion, the monetary authority's perspective will be the driver of the assets for next week.

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