Market's evolution 18 of May to 22 of May 2015

Market's evolution 18 of May to 22 of May 2015


Several prominent events marked the pulse of the markets over the past week. On the macroeconomic front the ECB, first with a conflicting message by Board member Coeure, boosted the US dollar against the Euro more than 2% in early Tuesday, and then noting that the purchase of debt will be higher than announced in May and June, to offset the lower activity in the summer months. As a result, the USD, the stock market and bonds, all rose.

Moreover, the Fed said that the expected rate hike in 2015, without discarding, will be postponed due to tepid Q1 macroeconomic indicators.

So, the week ended with the European stock markets rising between 2% and 3% (Germany and France), while USA and UK rose between the midpoint and the percentage point. The dollar has appreciated more than 3% to $ 1.10 / EUR. Interest rates on sovereign bonds of reference in Europe relaxed slightly, partly offsetting what happened in the preceding weeks.

Oil barrel slightly corrected its price to $ 65 / barrel, slightly above the 63 USD level to watch under the graphic aspect in order to consolidate the recovery that began from recent lows.

On the other hand, the end of the earnings season with a record of mostly positive publications, strengthened the bullish week on equities. In general, European companies have published a strong first quarter thanks to a favorable exchange rate, oil prices, monetary conditions and the absence of unpleasant surprises. However, the Greek front remains open and can deliver some headache in the short term. The valuations of companies, in the absence of new catalysts, are high.

During the weekend, in Spain there have been local and regional elections (in some Regions). The results have meant the end of bipartisanship, with the remarkable rise of new options for both right and left, but with greater increase in the latter. We analyze it more in depth in our weekly focus.