Anchor resume from 22 to 29 of June 2018
Friday, 29 of June 2018
This week focus
Volatility once again took center stage, we attended a week of constant falls in the face of the possibility of a US restriction on foreign investment that printed uncertainty in the markets; However, during the last day, investors were motivated by the decisions of European leaders in the field of trade and migration, which allowed us to put aside the protectionist escalation of the US administration that had been the driver in a momentary way of the bags during the previous sessions.
The new measures announced by the US administration seeking to limit foreign investments in the technology sector in order to protect the national industry were smoothed out by the government team, counteracting the fear of investors who ultimately focused their attention on the Summit European Thus, in the framework of the meeting of the main leaders in Brussels, two of the most important issues for the region were addressed: migration, given the increase of irregular entry through the Mediterranean and trade disputes with the United States after tariffs that have already entered into force.
With regard to emigration, the European Union pledged to financially support the countries with the greatest transit, additionally agreed on the voluntary creation of temporary centers for the control of refugees. The Italian government was the main driver of this proposal, while for Angela Merkel, this agreement is supposed to ease the pressure within the country by conservatives who demanded a solution for border management.
Regarding the tariffs imposed by the United States, the implementation of a new EU law was approved to control foreign investment; In addition, they will continue negotiating new agreements with the main commercial partners to face the commercial weakening.
The news from Brussels was accompanied by favorable macroeconomic publications in the Euro Zone. Inflation reached 2% in June, in line with expectations, approaching the objective set by the ECB, plus the confidence rate of companies and consumers improved slightly over the previous month, whereby the EUR / USD pair reached levels of 1,1650.
Despite the momentum of the last session, the weekly balance of the indices was negative. Only the FTSE100 managed to escape the losses ending the week at 7,683 points, while the Ibex35 fell to 9,676 points with a drop of -1.19% and Eurostoxx50 made it at 3,408 points with a fall of -0.98%. The most recent selective was the German DAX (-2.04%) penalized for the commercial war due to its exporting character.
In Wall Street, the losses were widespread, the commercial uncertainty added to the publication of United States GDP below expectations (GDP 1T2018 current 2.0%, estimated 2.2%), led Dow Jones to fall back -1.48% weekly, while that the S & P500, at the time of drafting the report, fell -1.40%. For its part, the Nasdaq dropped to levels of 7,505 points following a widespread takeover of the technology sector that cut earnings by 2.9% compared to the previous week.
In Asia, Hang Seng finished the week at 28,931 points with a -1.39% decline, while the Nikkei225 did so at levels of 22,340 points with a drop of -0.94%.
In the commodity market, Brent benchmark oil advanced 3.04% reaching 77.85USD / Barrel, while gold dropped to levels of 1,247 USD / Oz with a weekly fall of -1.62%.
For the next week we will be attentive to PMI publications in the Euro zone as well as retail sales. In the United States, the most relevant fact will be the publication of the minutes of the last EDF meeting in the middle of a half-week week for that country.