Weekly Extract 03/05/2021
Weekly summary April 26-30
- The US equity market closed the week mixed. The S&P500 was the only one of the three major indices to close the week in positive territory. April represented the best month for the S&P500 since November 2020. All eleven sectors of the S&P500 closed the month in positive territory, with Real Estate, Communication Services, and Consumer Discretionary sectors all up between 7% and 8%.
- In Europe, equities closed the week mixed. The leading index was the Ibex 35 with a rise of 2.3%. On the other hand, the Euro Stoxx 50 failed to set a new high and closed the week at -0.96%. The euro continues to show strength against the dollar and April was the most bullish month since July 2020.
- Corporate results continue to garner much of the attention. So far, 85% of companies have managed to beat analysts' expectations on earnings and 78% have beaten revenue expectations. However, many believe that these results were already fully priced in by the market. The biggest fear in the market would appear to be rising inflation and an increase in cases of COVID-19 in less developed countries, which could imply some risk to trade.
| AMERICA | Δ %5 Days | Δ % YTD | |
|---|---|---|---|
| DOW JONES | 33,874.85 | -0.50% | 10.68% |
| S&P500 | 4,181.17 | 0.02% | 11.32% |
| NASDAQ | 13,962.68 | -0.39% | 8.34% |
| EUROPE | Δ %5 Days | Δ % YTD | |
|---|---|---|---|
| Euro Stoxx 50 | 3,974.74 | -0.96% | 11.88% |
| FTSE 100 | 6,969.81 | 0.45% | 7.88% |
| CAC 40 | 6,269.48 | 0.18% | 12.93% |
| DAX | 15,135.91 | -0.94% | 10.33% |
| IBEX 35 | 8,815.00 | 2.28% | 9.18% |
| SMI | 11,022.34 | -1.59% | 2.98% |
| ASIA | Δ %5 Days | Δ % YTD | |
|---|---|---|---|
| NIKKEI 225 | 28,812.63 | -1.29% | 4.99% |
| HSI | 28,724.88 | -1.22% | 5.49% |
| CSI 300 | 5,123.49 | -0.23% | -1.68% |
| BONUS | Δ %5 Days | Δ % YTD | |
|---|---|---|---|
| US TREASURY 10Y | 1.63 | 4.37% | 154.33% |
| US Generic Govt 2 Yr | 0.16 | 0.60% | -19.02% |
| GERMANY 10 YR | - 0.20 | 21.61% | 65.53% |
| UK 10 Yr | 0.84 | 13.22% | 264.50% |
| COMMODITIES | Δ %5 Days | Δ % YTD | |
|---|---|---|---|
| WTI | 63.58 | 2.32% | 31.04% |
| BRENT | 67.25 | 1.72% | 28.88% |
| NATURAL GAS | 2.93 | 7.36% | 15.44% |
| CORN | 740.00 | 12.89% | 52.89% |
| WHEAT | 742.50 | 4.54% | 15.93% |
| GOLD $/oz | 1,767.70 | -0.52% | -6.72% |
| SILVER $/Oz | 25.85 | -0.85% | -2.12% |
| COPPER | 447.90 | 3.30% | 27.28% |
| PLATINUM | 1,203.39 | -2.31% | 12.24% |
| COINS | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| EURUSD | 1.202 | -0.64% | -1.60% |
| AUDUSD | 0.772 | -0.30% | 0.29% |
| CADUSD | 0.814 | 1.51% | -3.49% |
| CHFUSD | 1.095 | 0.05% | 3.20% |
| GBPUSD | 1.382 | -0.39% | 1.11% |
| CNYUSD | 0.154 | 0.32% | -0.80% |
| JPYUSD | 0.009 | -1.33% | 5.80% |
| USDBRL | 5.438 | -0.70% | -4.40% |
| USDMXN | 20.246 | 2.12% | -1.64% |
| USDCOP | 3729.88 | 2.48% | -8.05% |
| XBTUSD | 56814.44 | 12.35% | 95.94% |
To be taken into account
- On Saturday, May 1st, the annual convention of Berkshire Hathaway took place. Among the highlights we can mention that the company's chairman Warren Buffett and his vice-chairman Charlie Munger have mentioned that it could have been a mistake to sell a part of their participation in Apple, that they still would not invest in the airline sector and that if interest rates are supposed to be so low, the valuations of technology companies might not be so high. On the other hand, they have mentioned that investing in the famous SPACs is terrifying. Regarding Bitcoin, Charlie Munger has mentioned that he "does not welcome the currency that is so useful for hijackers and extortionists".
- In China, Golden Week will take place, which could be a catalyst to increase consumption and further support the country's economic recovery. It will be the first long holiday since the increase in COVID-19 cases in late 2020. On the other hand, the online shopping festival on May 5 is expected to be a big test for Beijing's new digital currency. The week will again be loaded with business earnings reports for the first quarter of 2021. According to Factset Research data, so far 85% of companies have managed to beat analysts' estimates compared to the average of 75%.
- Investors will be closely watching the monthly U.S. jobs report on Friday, May 7. According to Reuters, 925,000 jobs are expected to have been added in April, which would strengthen that U.S. economic growth is on track to be the strongest in four decades.
- Attention will also be focused on data from the ISM manufacturing and service sector reports.
Other important points
- The European Union expects total vaccine deliveries to reach 188 million doses, following an acceleration in the vaccination process in April. The main countries have accelerated the vaccination process and the group has closed a deal with Pfizer-BioNTech for an additional 1.8 billion doses until 2023.
- Investors are keeping a close eye on rising commodity prices. Copper has surpassed the USD 10,000 barrier for the first time in ten years and aluminum has reached a three-year high. Many believe that given the high demand for many products, this increase could be far from over.
- On Thursday, May 6, the Bank of England will hold a meeting at which it is expected to reduce its pace of bond purchases and taper the amount of stimulus as the economy is rebounding rapidly after the pandemic-induced recession.
- There was a significant increase in COVID-19 cases, the Indian government has announced that it is in talks with Pfizer to expeditiously approve the use of its vaccine in the country.
- The week will again be loaded with Q1 2021 corporate earnings reports. According to Factset Research data, so far 85% of companies have managed to beat analysts' estimates compared to the average of 75%.
Corporate calendar
Before market opening
| Monday 03 | tuesday 04 | wednesday 05 | thursday 06 | friday 07 |
|---|---|---|---|---|
| On Semiconductor | Pfizer | GM | Modern | Draft Kings |
| Estée Lauder Co | CVS Health | Rangold | Viacom cbs | Nikola |
| Berkshire Hathaway | Under Armour | SunPower | View | Spectrum Brands |
| WEC Energy Group | Ferrari | Hilton Worldwide | Regeneron | Cameco |
| Alexander's Inc | Conoco Phillips | Inmode | Himax | Cronos Group |
| LL Flooring | ArcelorMittal | Meridian Bioscience | ||
| Wayfair | Enbridge |
After market close
