Weekly Extract 04/10/2021
Weekly Summary from September 27 to October 1
- Negative week for the major US equity indices, the hardest hit index was the Nasdaq with a -3.2% decline. With September closing negative, the S&P 500 ended a seven-month winning streak. Concerns about sustained inflation, pressure on corporate earnings appear to have dampened investors' risk appetite.
- Of the eleven economic sectors, only the energy sector has shown a positive return in the last five days, up 5.79%. On the other hand, the hardest hit sectors have been technology and healthcare with declines of 3.3% and -3.5%.
- The U.S. consumer price index, known as the PCE, in the month of August grew by 4.3% (y-o-y), up from 4.2% previously and 3.9% expected. However, the monthly rate was unchanged at 0.4%, which is in line with estimates.
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- In Europe, all the main indexes closed another week in negative territory. As in the US market, the technology sector (SX8P) has been the hardest hit with a fall of -8.22%. The best performing sector has been the financials (SX7P) +1.7%, showing less sensitivity to current risk factors.
- Euro-zone inflation came in at 3.41TDP3T (y/y), reaching a 13-year high, driven by higher energy prices. Christine Lagarde, has mentioned that the ECB will analyze the price hike, but believes that it is mainly due to current bottlenecks.
| AMERICA | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| DOW JONES INDUS. AVG | 34.326,46 | -1,36% | 12,15% |
| S&P 500 INDEX | 4.357,04 | -2,21% | 16,00% |
| NASDAQ COMPOSITE | 14.566,70 | -3,20% | 13,02% |
| EUROPE | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| Euro Stoxx 50 Pr | 4.035,30 | -2,96% | 13,59% |
| FTSE 100 INDEX | 7.027,07 | -0,35% | 8,77% |
| CAC 40 INDEX | 6.517,69 | -1,82% | 17,41% |
| DAX INDEX | 15.156,44 | -2,42% | 10,48% |
| IBEX 35 INDEX | 8.799,50 | -0,83% | 8,99% |
| SWISS MARKET INDEX | 11.575,37 | -2,05% | 8,15% |
| ASIA | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| NIKKEI 225 | 28.771,07 | -4,89% | 4,83% |
| HANG SENG INDEX | 24.575,64 | 0,26% | -9,75% |
| CSI 300 INDEX | 4.866,38 | 0,27% | -6,62% |
| BONUS | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| US TREASURY 10Y | 1,46 | 0,74% | 115,77% |
| US Generic Govt 2 Yr | 0,26 | -2,12% | 107,72% |
| GERMANY 10 YR | - 0,22 | 1,68% | 58,21% |
| UK 10 Yr | 1,00 | 8,40% | 328,21% |
| COMMODITIES | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| WTI | 75,74 | 2,38% | 56,16% |
| BRENT | 79,16 | 1,37% | 52,88% |
| NATURAL GAS | 5,55 | 7,96% | 118,71% |
| CORN | 542,00 | 2,90% | 11,98% |
| WHEAT | 757,75 | 4,70% | 18,31% |
| GOLD $/oz | 1.757,90 | 0,47% | -7,24% |
| SILVER $/Oz | 22,55 | 0,70% | -14,64% |
| COPPER | 420,40 | -1,95% | 19,48% |
| PLATINUM | 977,11 | -0,84% | -8,86% |
| COINS | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| EURUSD | 1,160 | -1,06% | -5,08% |
| AUDUSD | 0,726 | -0,06% | -5,67% |
| CADUSD | 0,791 | 0,04% | -0,68% |
| CHFUSD | 1,075 | -0,67% | 5,16% |
| GBPUSD | 1,355 | -0,97% | -0,91% |
| CNYUSD | 0,155 | 0,21% | -1,26% |
| JPYUSD | 0,009 | -0,30% | 7,51% |
| USDBRL | 5,364 | 0,56% | -3,09% |
| USDMXN | 20,449 | 1,97% | -2,61% |
| USDCOP | 3793,38 | -1,15% | -9,59% |
| XBTUSD | 48132,89 | 11,99% | 66,00% |
To keep in mind during the week
- Investors will be closely watching the September labor market data to be released on Friday. The market is expecting an uptick in payrolls figures after disappointing August data. The consensus of analysts expect 475,000 payrolls to have been created in September and the unemployment rate to come in at 5.1%, which would represent the lowest figure since March 2020.
- Chinese real estate giant Evergrande announced today that it has suspended trading in its listed securities on the Hong Kong Stock Exchange. The suspension affects all structured products related to the company. Further details are expected in the coming hours.
- OPEC+ members are meeting today to review production policy considering a significant recovery in demand and that oil prices are at three-year highs. In July of this year, members had agreed to increase production by 400,000 barrels per day each month until at least April 2022, but according to news source Reuters producers would be considering the possibility of increasing production beyond what is foreseen in the agreement.
- House and Senate Democrats are still negotiating to reach an agreement on the reconciliation bill, originally proposed at $3.5 trillion. Democrats, working to coalesce around a far-reaching social policy and climate bill, are weighing two different approaches to reduce its overall cost: eliminating the proposed programs altogether or shortening the duration.
Other important points
- A massive leak of financial documents was published by several news organizations on Sunday, allegedly linking world leaders to secret dens of wealth. Among those allegedly involved are King Abdullah of Jordan, Czech Prime Minister Andrej Babis and people close to Russian President Vladimir Putin.
- Mainland Chinese markets will be closed until Thursday due to national holidays. Elsewhere, Japan will welcome a new leader when Fumio Kishida is sworn in as the nation's 100th prime minister.
- BioNTech director (developed the first COVID-19 vaccine) Ugur Sahinla, said that a new formulation would likely be needed by mid-2022 to protect against future mutations of the virus. He mentioned, that while current COVID-19 variants were not different enough to undermine current vaccines, new strains will emerge that can evade booster shots and the body's immune defenses.
- This week's highlights include PepsiCo on Tuesday before the market opens, followed by Constellation Brands (before the market opens) and Levi Strauss (after the close) on Wednesday, and to finish the week on Thursday before the market opens, Conagra Brands and Tilray.
Economic Calendar
Monday 04
CNY: National Holiday
EURO: Eurogroup meeting
USA: OPEC meeting
Tuesday 05
CNY: National Holiday
GBP: PMI Composite and Services Data
USA: ISM non-manufacturing PMI
Wednesday 06
CNY: National Holiday
GBP: Construction PMI
USA: ADP non-farm employment change
USA: IEA crude oil inventories
Thursday 07
CNY: National Holiday
EURO: ECB monetary policy meeting minutes
USA: New claims for unemployment benefits
Friday 08
CNY: Caixin Services PMI
USA: Employment data
