Market's evolution 28 of March to 01 of April 2016

Market's evolution 28 of March to 01 of April 2016


The week was dominated by macroeconomic data. On Tuesday we received the news that Abengoa did finally get the 75% of the attachment needed of creditors to the rescue plan formulated by the company, so that the bankruptcy was avoided.

We are still pending from the developments in the major economic regions. In particular, in the euro zone growth forecasts published by Standard & Poor's were of +1,5% in contrast with previous forecasts of +1,8%, cuts also in the leading indicators of the manufacturing PMI standing very close to levels contraction (in Germany the figure was 50,7). This growth haven’t found support in upturns of the price levels, and although core inflation rebounded +0,9% levels, it remained below the levels posted in January.

But it was certainly in the United States where all eyes focused in Janet Yellen's statements which surprised investors adopting a totally contrary tone to those claims made by other members of the Federal Reserve. She wanted to emphasize the uncertainty about the economic transition in China and to the behavior of the official interest rates, she said as well that the Fed still had room to act if necessary. As a result, the dollar against the euro suffered cuts from a 2% touching levels of 1,1437 EUR/USD.

From Asia messages of support to the economy, the Japanese prime minister said that the budget made for next year had the main objective of supporting the Japanese economy by encouraging population growth and improving wage conditions. In China, by contrast, they were accelerating actions in order to carry out financial reform. As for the advanced activity indicator surprised on the upside (at levels of 50,2), showing the first signs of expansion in nine months.

Closures in the equity markets were dominated by the red, in Europe due to corrective technical situation within the main selective, the IBEX 35 suffered a fall of -2,13% losing the support located at 8.668, the European selective EUROSTOXX50 suffered as well cuts of -1,12% closing at levels of 2.953. But it was in Asia where the worst setbacks occurred after that the NIKKEI225 lost a -5% and shut around the 16.164.

In contrast, in the US, the closures were positive after the NASDAQ Composite rallied up by + 3% (around the 4.914 now) and the S&P500 near a +2% (trading around the 2.072).

As far as commodities are concerned, the Brent back below 40 USD/Brent notching cuts -5% after that Iran announced that it had no intention to take part in the agreement resulting from the meeting between producers OPEC and non-OPEC.

As for currency, new developments in the EUR/GBP pair of +1,33% reaching the 0,8020 EUR/GBP in a week that have followed these doubts about the risk of BREXIT.