Weekly Extract 12/07/2021
Weekly Summary July 06 to 12
- The U.S. equity market closed the week in positive territory, with simultaneous all-time highs for all three major indices. The S&P500 reached new all-time highs on Friday and closed its third consecutive week with positive returns. Nine of the eleven sectors in the main index posted gains, with real estate, consumer discretionary, technology and health care sectors leading the week. On the other hand, the Nasdaq 100 returned positive again, extending its positive streak to eight straight weeks, the longest streak since 2019.
- The equity market in Europe closed the week with negative returns. The Spanish index, Ibex 35, suffered the worst decline with -1,47%. Among the most affected sectors, the oil and gas sector (SXEP -2.71%) and the travel and leisure sector (SXTP -1.62%) stand out. On the flip side, the real estate (SX86P) and basic resources (SXPP) sectors had positive returns of 3.2% and 2.2% respectively for the week.
- Historic week for the old continent, the European Central Bank (ECB) has decided to change its inflation target and raise it to symmetric 2% in what has meant the first strategic review in almost 20 years. This target will be flexible, which could have important implications for the economy and markets. The Bank has mentioned that it will begin to pay more attention to housing prices, which were not currently part of the consumer price basket.
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- The oil market maintained much of its recent gains amid the ongoing OPEC+ disagreement over production levels. Gold, on the other hand, posted its best week in the last seven, maintaining its positive streak for the third consecutive week.
- To end the week, U.S. President Joe Biden has signed a new executive order to reduce the trend towards consolidation of large companies and increase competition. The executive order of 72 initiatives by 12 federal agencies aims to promote competition in all areas of the economy and aims to protect consumers, workers and SMEs from the growing power of large companies.
- Asian companies have had a very negative week, with the main technology companies in the sector falling for six consecutive days, until Friday when they began to show signs of recovery. The anti-monopoly regulations imposed by the People's Government have put the most important companies under pressure.
AMERICA | QUOTE | Δ %5 Days | Δ % YTD |
---|---|---|---|
DOW JONES | 34.870,16 | 0,68% | 13,93% |
S&P500 | 4.369,55 | 1,15% | 16,33% |
NASDAQ | 14.701,92 | 1,24% | 14,07% |
EUROPE | QUOTE | Δ %5 Days | Δ % YTD |
---|---|---|---|
Euro Stoxx 50 | 4.068,09 | -0,40% | 14,51% |
FTSE 100 | 7.121,88 | -0,02% | 10,24% |
CAC 40 | 6.529,42 | -0,36% | 17,62% |
DAX | 15.687,93 | 0,24% | 14,35% |
IBEX 35 | 8.776,60 | -1,47% | 8,71% |
SMI | 11.989,81 | 0,21% | 12,02% |
ASIA | QUOTE | Δ %5 Days | Δ % YTD |
---|---|---|---|
NIKKEI 225 | 27.940,42 | -2,93% | 1,81% |
HSI | 27.344,54 | -3,41% | 0,42% |
CSI 300 | 5.069,44 | -0,23% | -2,72% |
BONUS | QUOTE | Δ %5 Days | Δ % YTD |
---|---|---|---|
US TREASURY 10Y | 1,36 | -4,52% | 121,60% |
US Generic Govt 2 Yr | 0,21 | -9,00% | 40,98% |
GERMANY 10 YR | - 0,29 | -24,48% | 36,72% |
UK 10 Yr | 0,66 | -6,77% | 314,56% |
COMMODITIES | QUOTE | Δ %5 Days | Δ % YTD |
---|---|---|---|
WTI | 74,56 | -0,89% | 53,67% |
BRENT | 75,59 | -0,76% | 45,93% |
NATURAL GAS | 3,67 | 0,36% | 44,70% |
CORN | 629,75 | -12,50% | 30,11% |
WHEAT | 608,50 | -7,59% | -5,00% |
GOLD $/oz | 1.810,60 | 1,90% | -4,46% |
SILVER $/Oz | 26,21 | 0,52% | -0,76% |
COPPER | 435,25 | 2,60% | 23,69% |
PLATINUM | 1.104,67 | 1,00% | 3,04% |
COINS | QUOTE | Δ %5 Days | Δ % YTD |
---|---|---|---|
EURUSD | 1,188 | 0,09% | -2,78% |
AUDUSD | 0,749 | -0,50% | -2,68% |
CADUSD | 0,804 | -0,99% | -2,27% |
CHFUSD | 1,094 | 0,76% | 3,28% |
GBPUSD | 1,390 | 0,56% | 1,69% |
CNYUSD | 0,154 | -0,09% | -0,74% |
JPYUSD | 0,009 | 0,82% | 6,59% |
USDBRL | 5,260 | 4,19% | -1,18% |
USDMXN | 19,869 | 0,49% | 0,23% |
USDCOP | 3834,01 | 1,30% | -10,54% |
XBTUSD | 33522,57 | 1,15% | 15,61% |
To be taken into account
- Billionaire Richard Branson soared more than 50 miles over the New Mexico desert aboard his Virgin Galactic rocket plane Sunday and returned safely, successfully completing the world's first space tourism flight. The milestone opens a new era of space travel, a sector that some analysts say has the potential to reach $3 billion annually by 2030.
- The second-quarter corporate earnings season is underway. Investors are pointing to solid results to support the new highs that the stock market has been steadily reaching. According to Factset data, earnings for S&P 500 companies are expected to grow by 64% this second quarter, which would mark the fastest increase since the fourth quarter of 2009. The financial sector will kick off the presentation of results, in a week in which JP Morgan, Morgan Stanley, Citi, Bank of America, Wells Fargo, among others are expected to show very important results considering that the sector is the third best performing so far in 2021.
Other important points
- Tensions between China and the United States are rising, after the Asian government declared that it "resolutely opposes" the inclusion of 23 Chinese entities on a U.S. economic blacklist for issues including alleged human rights abuses and military ties. For the Chinese government, this event is a serious violation of international economic and trade rules and it considers that it will take all necessary measures to safeguard its country's legitimate rights and interests.
- Among the economic data to watch will be a new reading of the consumer price index (CPI) in the U.S. The CPI is expected to come in at 0.51TDP3T from last month after a 0.61TDP3T increase in May.
- U.S. Treasury Secretary Janet Yellen said Sunday that the recently approved mechanism to allow more countries to tax highly profitable large multinational corporations may not be ready for consideration by lawmakers until the spring of 2022. At the same time she has reiterated that she expects the US Congress to approve the part of the agreement that would impose a global minimum tax rate on corporations of at least 15%.
- China's V-shaped economic rebound after the Covid-19 pandemic may be starting to slow down, which could be a signal for other countries around the world to heed. According to some economists the slowdown could be occurring sooner than expected which could cause damage to the world's economies.
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- The European Central Bank will change its guidance on next policy steps at its July 22 meeting to reflect its new strategy to allow them to tolerate inflation above 2% when rates are close to bottoming out.
- Crude oil prices fell in the early hours of the week amid concerns that economic growth is weakening. In the futures market there is a significant imbalance in terms of long to short position ratios, the ratio is at the highest levels in the last three years.
- Pfizer, the manufacturer of one of the COVID-19 vaccines, has announced that it will meet with federal health officials on Monday 12 to discuss the need for a booster dose of the coronavirus vaccine as it prepares its application for licensure.
- Microsoft Corp. has announced plans to acquire cybersecurity firm RiskIQ for more than $500 million in cash. The cybersecurity sector has recently become increasingly relevant in the face of the growing threat of cyber-attacks at the workplace and personal level.
Corporate Calendar
Before market opening
Tuesday 13th | Wednesday 14 | Thursday 15 | Friday 16 |
---|---|---|---|
JP Morgan | Bank of America | BNY Mellon | Ericsson |
Goldman Sachs | Delta | Morgan Stanley | Autoliv |
Fastenal | Wells Fargo | UnitedHealth Group | Charles Schwab |
Pepsico | Citi | TSMC | First Horizon |
First Republic Bank | Black Rock | US Bancorp | State Street |
Organizational chart | PNC | Truist |
After market close
Tuesday 13th | Wednesday 14 | Thursday 15 | Friday 16 |
---|---|---|---|
Aspen | Exfo | American Outdoors | |
Washington Federal | Alcoa | ||
Western Alliance | |||
Economic Calendar
Monday 12
BRL: BCB Target Market Report
USD: 10-year debt auction (T-Note)
Tuesday 13th
CNY: Trade balance (USD)
ALE: CPI Data
USA: CPI Data
Wednesday 14
GBP: CPI Data
USA: PPI Data
CAD: Bank of Canada Monetary Policy Report
Thursday 15
CNY: GDP data"
CNY: Industrial Production Index
GBP: Unemployment development data
USA: New claims for unemployment benefits
USA: Philadelphia Fed Manufacturing Index
Friday 16
USA: Underlying retail sales data