Economic Recovery | Weekly Excerpt
Week of April 12-16
The solid corporate results presented during the week and the very good data from the retail sales sector and weekly unemployment claims give signs of an accelerated economic recovery for the world's leading power. And the US equity market closed the week at new all-time highs. In addition, the S&P500 closed its fourth consecutive week of gains.
On the other hand, in Europe, the week has closed positively for the main equity indices. As for the, the Eurostoxx600, we know that it has closed its seventh week up, the longest streak since May 2018. Consequently, the euro has achieved its second consecutive week of gains against the dollar.
Growth figures in China
In fact, among the highlights of the week we have to mention that China has presented its growth figures for the first quarter of the year. In addition, the world's second largest economy has reported GDP growth of 18.31TP3Q over the same period last year. Thus, this figure represents the highest growth since records began in 1992.
| AMERICA | Δ %5 Days | Δ % YTD | |
|---|---|---|---|
| DOW JONES | 34,200.67 | 1.18% | 11.74% |
| S&P500 | 4,185.47 | 1.37% | 11.43% |
| NASDAQ | 14,052.34 | 1.10% | 9.03% |
| EUROPE | Δ %5 Days | Δ % YTD | |
|---|---|---|---|
| Euro Stoxx 50 | 4,032.99 | 1.36% | 13.52% |
| FTSE 100 | 7,019.53 | 1.50% | 8.65% |
| CAC 40 | 6,287.07 | 1.91% | 13.25% |
| DAX | 15,459.75 | 1.48% | 12.69% |
| IBEX 35 | 8,613.50 | 0.56% | 6.69% |
| SMI | 11,262.97 | 0.22% | 5.23% |
| ASIA | Δ %5 Days | Δ % YTD | |
|---|---|---|---|
| NIKKEI 225 | 29,683.37 | -0.28% | 8.16% |
| HSI | 28,969.71 | 0.94% | 6.38% |
| CSI 300 | 4,966.18 | -1.37% | -4.70% |
| BONUS | Δ %5 Days | Δ % YTD | |
|---|---|---|---|
| US TREASURY 10Y | 1.58 | -4.74% | 152.08% |
| US Generic Govt 2 Yr | 0.16 | 4.08% | -21.97% |
| GERMANY 10 YR | - 0.26 | 13.46% | 44.73% |
| UK 10 Yr | 0.76 | -1.21% | 152.98% |
| COMMODITIES | |||
|---|---|---|---|
| WTI | 63.13 | 6.42% | 30.11% |
| BRENT | 66.77 | 6.07% | 28.90% |
| NATURAL GAS | 2.68 | 6.10% | 5.55% |
| CORN | 585.50 | 1.43% | 20.97% |
| WHEAT | 652.50 | 2.15% | 1.87% |
| GOLD $/oz | 1,779.00 | 2.05% | -6.13% |
| SILVER $/Oz | 26.11 | 3.08% | -1.16% |
| COPPER | 416.80 | 3.17% | 18.44% |
| PLATINUM | 1,205.72 | 0.05% | 12.46% |
| COINS | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| EURUSD | 1.198 | 0.71% | -1.91% |
| AUDUSD | 0.773 | 1.46% | 0.52% |
| CADUSD | 0.800 | 0.18% | -1.78% |
| CHFUSD | 1.087 | 0.50% | 3.96% |
| GBPUSD | 1.383 | 0.91% | 1.19% |
| CNYUSD | 0.153 | 0.49% | -0.10% |
| JPYUSD | 0.009 | 0.80% | 5.30% |
| USDBRL | 5.588 | -1.70% | -6.97% |
| USDMXN | 19.919 | -1.20% | -0.02% |
| USDCOP | 3609.70 | -0.81% | -4.99% |
| XBTUSD | 62005.41 | 6.29% | 113.84% |
To be taken into account
- An important week in terms of corporate results. According to FactSet, S&P500 companies are expected to report earnings per share growth of 28% for the first quarter of the year, which would represent the largest increase in a decade.
- Investor attention appears to be more on the pace of the economic recovery than on growing concerns about the new Covid-19 variants. In addition, among the week's most important economic data, existing home sales data for March are expected on Thursday, March 22 and composite PMI data.
- On the other hand, Apple will hold an event on April 20 called "Spring Loaded" in which it will showcase its new products. Accordingly, it is expected that the company could reveal new iPads, new iMacs, new AirPods, AirTags, a new Apple TV and possibly a new Apple Pencil.
- However, the European Central Bank meets this week via video and policymakers are expected to reiterate that there is a need for further emergency stimulus with a time horizon to March 2022. On the other hand, interest rates are expected to remain at their current historic lows.
Other important points
- The European Union has announced that it will receive an additional 100 million doses from Pfizer to accelerate the vaccination process. As a result, the EU intends to have two-thirds of the population vaccinated this year.
- As a result of the global semiconductor shortage, it could greatly affect automotive production in China. While it is true, so far this year the chip supply shortage has affected auto production by 5% to 8%. Due to the shortage, auto inventory is expected to continue to fall in China as the chip shortage affects overall production, which could lead to auto supply being unable to meet demand in the near term.
- To conclude, the cryptocurrency market has reported more than double-digit declines this weekend. Consequently, bitcoin has fallen as much as 15% on Sunday which means its biggest drop since February. The crypto sector starts a week with all the attention, before different rumors that some countries would be behind banning direct and indirect payments with cryptocurrencies and on the other hand before news on the web (Without official announcement) that the US Treasury is possibly ready to charge several financial institutions for money laundering through the use of cryptocurrencies.
Corporate calendar
Before market opening
