Market's evolution 14 of September to 18 of September 2015

Market's evolution 14 of September to 18 of September 2015


Rises in the interest rates were again postponed in the US as the consensus well anticipated, the FED decided to maintain current rates and delay the rise because the inflation situation had remained weak due to the several falls in oil prices and recent existing economic and financial developments at the global level. However, Yellen said that despite the low inflation, there were many reasons that supported an immediate rise in interest rates, so it will remain the focus of attention in the coming weeks.

Despite this, after the Open Market Meeting, they decided to increase the growth outlook for the United States in 2015 to +2, + 2.3%, while projections for 2016 were revised downwards to around by + 2.2% - + 2.6% vs. + 2.4% - + 2.7% forecasted earlier.

In the euro zone on Sunday to Greek, citizens were called to the polls for third time this year with the final victory party Tsipras, despite polls showing a hotly contested election between Syziza and New Democracy, 35.5% of the Greek people decided to support with their votes to the leftist coalition. While in Spain, continuing to garner attention to the Catalan elections on Sunday due to the existing sovereignty debate.
Regarding the macro situation in the area, the publication of positive price data with the CPI higher than expected (+ 0% over the previous -0.6%) helped reduce fears of deflation, which still shows a situation solid growth.

Among the different European economies, the growth of the Spanish economy stands out after the great sales data published by one of the largest companies in the country; Inditex hitting new records in sales and profit with an increase of + 26%.

The Bank of England stated that the rate hike in the UK is close and will take place while wages rise. In addition, they announced that the country's growth and expectations remain positive and that inflation will exceed the target in 2-3 years.

By contrast in Asia, the data released throughout the week was negative in China after the publication of industrial sales below consensus. In the same vein, Japan still maintained the fears of a global economic slowdown following the disclosure of an industrial production lower than expected (-0.8% today compared to -0.3% expected and + 1.1% previously). Moreover, the OECD lowered the growth prospects of China and Japan and S & P lowered the rating from Japan to A + from AA- / A.

The evolution of the main European indices was mixed in Europe. The Spanish IBEX 35 with rallies above the + 1%, while the trend was negative in the rest of European Equity Markets recording falls up to the -2% for Germany's DAX. Conversely, American markets closed flat.

The protagonist in the commodities markets was again the price of Brent, which fluctuated around 46 - 50USD/Brent and closed the week with falls of -1.40%  despite the production cuts announced by the OPEC. We should highlight as well the rise of nearly + 3% in the price of an ounce of gold throughout the week.