Weekly Extract 09/08/2021
Weekly Summary August 02 to 06
- The U.S. equity market has managed to close the week with a new all-time high, the 44th record so far this year. Ten of the eleven sectors of the S&P 500 closed in positive territory, the leading sectors for the week were financials and utilities with gains of 3,56% and 2,28% respectively.
- The equity market in Europe made new highs. The leading sectors were Financials (SXFP) and Real Estate (SX86P) with rises of 3,52% and 2,83% respectively. The Ibex 35, with a weekly rise of 2.3%, had its best week since May.
- The highlight of the week was the U.S. employment data. The U.S. economy managed to create 943,000 non-agricultural payrolls in July (870,000 expected) and an upward revision to June's data of 119,000 more payrolls than expected. The July increase represents the best figure in a year, raising optimism in the economic recovery. The U.S. unemployment rate fell to 5.4% the lowest rate since the pandemic. The largest payroll sector contributor was leisure and hospitality with 380,000 and 220,700 local educational payrolls.
- The jobs report supports aggressive messaging by Federal Reserve Vice Chair Richard Clarida, who said the central bank is on track to withdraw stimulus from the economy with an announcement later this year and that it would begin tapering bond purchases and moving toward an interest rate hike in 2023.
| AMERICA | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| DOW JONES | 35.208,51 | 0,78% | 15,04% |
| S&P 500 | 4.436,52 | 0,94% | 18,12% |
| NASDAQ | 14.835,76 | 1,11% | 15,11% |
| EUROPE | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| Euro Stoxx 50 | 4.174,54 | 2,08% | 17,51% |
| FTSE 100 | 7.122,95 | 1,29% | 10,25% |
| CAC 40 | 6.816,96 | 3,09% | 22,80% |
| DAX | 15.761,45 | 1,40% | 14,89% |
| IBEX 35 | 8.879,00 | 2,34% | 9,97% |
| SMI | 12.176,30 | 0,49% | 13,76% |
| ASIA | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| NIKKEI 225 | 27.820,04 | 1,97% | 1,37% |
| HSI | 26.179,40 | 0,84% | -3,86% |
| CSI 300 | 4.921,56 | 2,29% | -5,56% |
| BONUS | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| US TREASURY 10Y | 1,30 | 6,11% | 141,87% |
| US Generic Govt 2 Yr | 0,21 | 13,25% | 80,97% |
| GERMANY 10 YR | - 0,46 | 1,02% | 14,12% |
| UK 10 Yr | 0,61 | 8,10% | 465,74% |
| COMMODITIES | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| WTI | 68,28 | -7,67% | 40,73% |
| BRENT | 70,49 | -7,65% | 36,08% |
| NATURAL GAS | 4,14 | 5,77% | 63,06% |
| CORN | 555,00 | 1,46% | 14,67% |
| WHEAT | 719,00 | 2,17% | 12,26% |
| GOLD $/oz | 1.760,00 | -2,90% | -7,13% |
| SILVER $/oz | 24,33 | -4,78% | -7,90% |
| COPPER | 434,80 | -3,00% | 23,56% |
| PLATINUM | 983,58 | -6,46% | -8,26% |
To keep in mind during the week
- The U.S. Senate agreed last Saturday to move toward a vote on President Joe Biden's infrastructure plan, with 67 votes in favor and 27 against. However, there are still certain amendments that have yet to be finalized among them proposals for new rules on cryptocurrencies and on flexibility for states and localities in how they choose to use their unspent pandemic relief funds.
- Investors will be closely watching Wednesday's consumer price data. The previous month's figures were the highest since 2008, so further elevated data could further support the case for the Federal Reserve to modify its current monetary policy and begin tapering stimulus. Core CPI data (excluding energy products and unprocessed food) is expected to have risen 4.3% in July from a year ago, pulling back slightly from June's 4.5%.
- So far 89% of the S&P 500 companies have reported results for the second quarter of 2021, of which 87% have reported Earnings Per Share (EPS) above estimates. This is above the five-year average of 75%. This week the presentation continues and highlights Walt Disney, Coinbase, AMC, Airbnb, DoorDashamong others.
Other important points
- The technology behind cryptocurrencies is gaining more and more followers, after the chief executive officer of the NasdaqAdena Friedman, has stated that the exchange intends to apply blockchain to the financial market infrastructure and become a disruptor in the space.
- According to Jens Weidmann, part of the ECB's governing council, the body must tighten its monetary policy if it needs to counter inflationary pressures and cannot fail to do so to avoid higher financing costs for eurozone states. This is in connection with the fact that at the last meeting on July 22, the ECB pledged to keep interest rates at historic lows for longer to boost sluggish inflation.
- China's CPI data grew by 1% y-o-y in July, according to data released today by the National Bureau of Statistics (NSO), relative to the 0.8% expected by analysts. This was down from the previous month's figure (1.1%).
- The number of COVID-19 cases in China has reached six-month highs, with millions of people now undergoing confinement measures and mass testing taking place across the country. This could put a brake on expected economic growth, which has recently been corrected downward. Considering that China is the world's largest oil exporter and second largest oil consumer, this situation puts oil demand under pressure.
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- French carmaker Renault S.A. (RNLSY) has said it will seek to revive business in China by forming a hybrid vehicle joint venture with Geely Holding Group, a year after it ended its previous operation in the world's largest auto market. The two companies have signed a framework agreement to establish the joint venture, which will manufacture and sell Renault-branded gasoline-electric hybrid cars in China using Geely's technologies, supply chains and manufacturing facilities, while Renault would focus on sales and marketing.
- Airbus has announced that it could lay off about 1,000 employees in Germany in its small parts manufacturing business if the unit is not spun off in accordance with a cost-cutting strategy laid out in April.
- Chinese company ByteDance, owner of the popular short video app TikTok, has announced that it is sticking to its plans to go public in early 2022 through a listing in Hong Kong.
Before market opening
| Monday 09 | Tuesday 10 | Wednesday 11 | Thursday 12 | Friday the 13th |
|---|---|---|---|---|
| Biontech | Exela | The Wendy's | Palantir | Embraer |
| WorkHorse | Sysco | Wix.com | Baidu | The Lion Electric |
| Barrick Gold | Nanox | Target Hospitality | Grow Generation | Medicenna |
| Berkshire Hathaway | Casper | Hyliion | Canadian Solar | Diversey |
| Tyson | Marinus | EVgo | Celsius | Superior |
After market close
| Monday 09 | Tuesday 10 | Wednesday 11 | Thursday 12 | Friday the 13th |
|---|---|---|---|---|
| AMC | Fubo TV | Nio | Walt Disney | |
| Smile | Coinbase | Clove | Wish | |
| Inovio | McAfee | Ebay | Airbnb | |
| Chegg | Unity | Blink | Sofi | |
| Callaway | Upstart | Coupang | DoorDash |
Economic Calendar
Monday 09
CNY: CPI and PPI data
USA: JOLTs survey of job vacancies
BRL: BCB Target Market Report
Tuesday 10
ALE: ZEW index of investment confidence in Germany
EURO: ZEW index of investment confidence in the euro zone
Wednesday 11
USA: IEA crude oil inventories
USA: Underlying CPI
Thursday 12
USA: PPI Data
USA: GDP Data
EURO: Industrial production in the euro zone
Friday the 13th
USA: Non-Farm Payrolls and Unemployment Rate
