Anchor resume from 5 to 12 of May 2017
Monday, 15 of May 2017
Equity markets consolidated their levels after last week's rallies, awaiting new data confirming the direction of economies and stability in financial markets.
Macron's victory within the French presidential elections was already discounted in the markets, so during the week we have not seen any significant changes. In fact, the DAX-30 ended Friday's session at levels of 12.770 (+0.42%) after breaking the existing resistance at 12,400 reached new historical highs, while the EUROSTOXX-50 did around The 3.637 (-0,58%). As for the IBEX-35, it closed with declines of -2,14% weighted by the rumors that cast doubt on the solvency of Banco Popular. In contrast, the FTSE-100 benefited from the recent rebound in raw materials and crude.
As for the evolution of the Eurozone, the European Commission increased the region's growth forecasts for 2017 to +1,7% from the +1,6% previously forecasted. On the other hand, inflation forecasts were reduced as discussed above +1,6%. Along the same lines, Draghi confirmed the recovery of the European economy while he was not not that resounding over the upward trend in price levels.
From the UK, the week became marked by the Bank of England meeting. Reference rates remained unchanged at +0,25% and growth forecasts were reduced to +1,9% from the +2% previously predicted.
During the current week we will closely follow the publication of business results and the evolution of the polls on the English elections as determining factors in the evolution of markets.
With respect to Wall Street, the S&P-500 took a breath at levels of 2.390 pending catalysts to help break the important resistance at 2.400. We continued without detecting bearish indicators but we remember that the selective is already above the levels of fair value.
Regarding macroeconomic developments, retail sales recovered a +0,4% despite forecasts pointing to a +0,6% upturn and data on the labor market remained strong, which together with the recent statements made by members of the FED, we could start hearing about standardization of the balance sheet.
In the Asian continent we highlight the progress of the Chinese selective Hang Seng (+2,78%) to 25.156 rebounding benefited by the injections of capital made in the market by the administration and by the rebound in raw materials. The NIKKEI-225 remained unchanged at 19.883 (+0,79%).
The crude recovered levels of the 50 USD/Brent thanks to rumors regarding the extension of the production agreement between OPEC and non-OPEC countries.