Weekly excerpt 09/13/2021
- Negative week for the US equity market, the three main indices closed the week with declines close to -2%. On the S&P 500 side, all eleven sectors closed negative, with the Real Estate and Industrials sectors falling -3,85% and -3,13% respectively.
- The week in Europe has been negative for all major equity indices. The most affected index has been the Spanish selective index, Ibex 35 with a fall of -1.9%. The worst performing sectors were Healthcare -2.56% (SXDP), Real Estate -2.1% (SX86P) and Utilities -2.08% (SX6P).
- Among the highlights of the week we can mention that the European Central Bank has announced a reduction in the pace of purchases of its program to fight the pandemic (PEPP). The ECB has mentioned that with a "slightly" lower pace of purchases, favorable financing conditions can be maintained. In turn, Christine Lagarde has affirmed that the economic recovery is underway and that the euro zone's GDP will reach pre-pandemic levels by the end of the year.
| AMERICA | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| DOW JONES | 34.607,72 | -2,36% | 13,07% |
| S&P 500 | 4.458,58 | -1,73% | 18,70% |
| NASDAQ | 15.115,49 | -1,41% | 17,28% |
| EUROPE | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| Euro Stoxx 50 | 4.170,35 | -0,75% | 17,39% |
| FTSE 100 | 7.029,20 | -1,53% | 8,80% |
| CAC 40 | 6.663,77 | -0,39% | 20,04% |
| DAX | 15.609,81 | -1,09% | 13,78% |
| IBEX 35 | 8.695,30 | -1,90% | 7,70% |
| SMI | 12.060,64 | -2,36% | 12,68% |
| ASIA | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| NIKKEI 225 | 30.381,84 | 4,30% | 10,70% |
| HSI | 26.205,91 | 1,17% | -3,76% |
| CSI 300 | 5.013,52 | 3,52% | -3,79% |
| BONUS | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| US TREASURY 10Y | 1,34 | 1,29% | 97,79% |
| US Generic Govt 2 Yr | 0,21 | 4,21% | 54,57% |
| GERMANY 10 YR | - 0,33 | 8,51% | 23,79% |
| UK 10 Yr | 0,76 | 5,81% | 233,92% |
| COMMODITIES | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| WTI | 69,56 | -0,61% | 43,36% |
| BRENT | 72,76 | 0,21% | 40,46% |
| NATURAL GAS | 4,97 | 6,98% | 95,59% |
| CORN | 502,75 | -2,62% | 3,87% |
| WHEAT | 675,00 | -4,12% | 5,39% |
| GOLD $/oz | 1.787,40 | -1,22% | -5,68% |
| SILVER $/Oz | 23,86 | -0,08% | -9,68% |
| COPPER | 441,85 | 3,00% | 25,56% |
| PLATINUM | 959,75 | -6,53% | -10,47% |
| COINS | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| EURUSD | 1,181 | -0,56% | -3,30% |
| AUDUSD | 0,735 | -1,43% | -4,43% |
| CADUSD | 0,789 | -1,20% | -0,44% |
| CHFUSD | 1,089 | -0,45% | 3,76% |
| GBPUSD | 1,383 | -0,27% | 1,20% |
| CNYUSD | 0,155 | 0,18% | -1,27% |
| JPYUSD | 0,009 | -0,16% | 6,35% |
| USDBRL | 5,267 | 1,59% | -1,30% |
| USDMXN | 19,892 | -0,17% | 0,11% |
| USDCOP | 3838,69 | 1,00% | -10,65% |
| XBTUSD | 45720,76 | -8,84% | 57,66% |
To keep in mind during the week
- Investors' attention will be on a new consumer price index report and consumer spending report.
- Inflation data is expected to show a slight deceleration from previous months, with economists expecting a CPI figure of 0.4% from 0.5% in the previous month (5.3% on an annualized basis from 5.4% on an annualized basis in the previous month).
- Consumer spending has shown signs of weakening in recent months as the reduction in certain government stimulus has begun to become evident.
- In the U.S., according to people familiar with the matter, House Democrats will propose raising the corporate tax rate to 26.5% from the current 21%. The increase that would be targeted is less than President Joe Biden's initial target of 28%. In this sense, the top rate on capital gains would increase from 20% to 25%, instead of the 39.6% proposed by the President. In light of this news, analysts at Goldman Sachs have mentioned that an increase in the tax rate could reduce the S&P 500's projected 2022 earnings by 5%.
- According to many experts, the problems from the pandemic are not over yet. Some scientists have been warning of more outbreaks that could close schools and overwhelm hospitals as some economies reopen. To cite a few major cases, Israel is preparing for a possible fourth dose of vaccine in case a new round of boosters is required, China sent a health team to Fujian province in an attempt to stamp out a new outbreak of several dozen cases, and Singapore will begin administering booster vaccines to the most vulnerable starting tomorrow.
Other important points
- Oil prices have started the week upwards, concerns about an impact on US supplies after the damage of Hurricane Ida and expectations of higher demand put oil in the spotlight. According to the latest report from Bank Of America, the price of a barrel could reach USD 100 in the winter season, they have mentioned that they believe OPEC+ is acting in the right way to stabilize oil prices as it has historically done.
- In the U.K., this week's inflation, employment and retail sales data will be closely watched, after in the past days some authorities mentioned that the U.K. economic rebound is slowing down. The Bank of England is scheduled to hold its next monetary policy meeting on September 23.
- On Wednesday 16, China will release its industrial production, retail sales and fixed asset investment data, which will reflect the economic impact of a new widespread outbreak of COVID-19 in August (Beijing had to partially close the world's third largest container port and impose new restrictions in some areas of the country).
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- Last weekend in Argentina the primaries for the legislative elections have been held in which the opposition is achieving the majority of votes according to the provisional count. With 46% of the votes counted, the center-right opposition obtained 38.3% of the votes in the province of Buenos Aires, against 33.7% of the ruling Peronism.
- On September 14, Apple will hold a virtual event called California Streaming in which the company is expected to show the public its new products. The company is expected to present a new generation of smart watches, new iPads and new features that are mainly related to the cameras of the new cell phones.
- According to reuters, Amazon in talks to acquire the rights to the "Sunday Ticket" package of the NFL (National Football League). The NFL is expected to seek between $2 billion and $25 billion per year for the package and it is mentioned that the goal is to complete talks on this deal before the end of the season in February.
