Weekly Excerpt 11/15/2021
Weekly Summary November 08 to 12
- The U.S. equity market closed the week in negative territory, with the three major indices unable to maintain the strong performance of the last few weeks, and giving up territory in the face of inflation data released on Wednesday the 10th, which was the highest in the last thirty years. After five consecutive weeks of positive returns, the S&P 500 has cut short its longest bullish streak since August 2020. Six of the eleven sectors of the economy closed the week in the red, led by Consumer Discretionary -3,19% and Energy -1,71%.
- In Europe, financial markets rose for the sixth consecutive week, supported by solid corporate results for the third quarter of the year. Investor sentiment continues to shift towards riskier assets beyond concerns about elevated inflation levels. Fourteen of the twenty sectors in the Eurostoxx 600 closed the week in positive territory, enabling the region's main index to record its longest weekly winning streak since mid-April. The only European market that failed to sustain the good returns was Spain, reflecting a -0.55% decline for the Ibex 35.
- The most relevant news of the week has been the publication of the inflation in the United States. The year-over-year figure of 6.2% was the highest since 1990; analysts had expected a figure of 5.9%. The price increase is the fifth in a row in which year-over-year inflation is above 5%. Excluding fuel and food price increases (the most volatile), core inflation stands at 4.6% on an annual basis.
- Beyond the cost increases, according to a Bank of America report, companies have been able to maintain record margin levels in the third quarter of the year compared to analysts' estimates of a 70 basis point decline.
| AMERICA | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| DOW JONES INDUS. AVG | 36.100,31 | -0,63% | 17,95% |
| S&P 500 INDEX | 4.682,85 | -0,31% | 24,67% |
| NASDAQ COMPOSITE | 15.860,96 | -0,69% | 23,06% |
| EUROPE | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| Euro Stoxx 50 Pr | 4.370,33 | 0,17% | 23,02% |
| FTSE 100 INDEX | 7.347,91 | 0,60% | 13,74% |
| CAC 40 INDEX | 7.091,40 | 0,72% | 27,74% |
| DAX INDEX | 16.094,07 | 0,25% | 17,31% |
| IBEX 35 INDEX | 9.080,80 | -0,55% | 12,47% |
| SWISS MARKET INDEX | 12.516,05 | 1,58% | 16,93% |
| ASIA | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| NIKKEI 225 | 29.609,97 | -0,01% | 7,89% |
| HANG SENG INDEX | 25.327,97 | 1,84% | -6,99% |
| CSI 300 INDEX | 4.888,38 | 0,95% | -6,20% |
| BONUS | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| US TREASURY 10Y | 1,57 | 8,05% | 77,90% |
| US Generic Govt 2 Yr | 0,51 | 27,61% | 189,31% |
| GERMANY 10 YR | - 0,26 | 7,74% | 51,68% |
| UK 10 Yr | 0,91 | 8,10% | 162,64% |
| COMMODITIES | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| WTI | 80,85 | -0,52% | 66,63% |
| BRENT | 82,15 | -0,71% | 58,59% |
| NATURAL GAS | 4,80 | -12,93% | 89,17% |
| CORN | 577,50 | 4,43% | 19,32% |
| WHEAT | 817,00 | 6,59% | 27,56% |
| GOLD $/oz | 1.867,80 | 2,81% | -1,44% |
| SILVER $/oz | 25,40 | 5,15% | -3,83% |
| COPPER | 445,20 | 2,51% | 26,51% |
| PLATINUM | 1.086,19 | 4,82% | 1,31% |
| COINS | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| EURUSD | 1,14 | -1,07% | -6,33% |
| AUDUSD | 0,73 | -0,89% | -4,68% |
| CADUSD | 0,80 | -0,70% | -1,51% |
| CHFUSD | 1,09 | -0,97% | 4,10% |
| GBPUSD | 1,34 | -0,59% | -1,84% |
| CNYUSD | 0,16 | 0,30% | -2,26% |
| JPYUSD | 0,01 | -0,45% | 10,26% |
| USDBRL | 5,46 | -1,55% | -4,73% |
| USDMXN | 20,52 | 0,88% | -2,96% |
| USDCOP | 3.884,63 | 0,15% | -11,71% |
| XBTUSD | 64.200,65 | 5,29% | 121,41% |
To keep in mind during the week
- Investors will be paying close attention to the virtual meeting to be held by the US and Chinese presidents. They are expected to discuss the economic practices of China and Taiwan and the lifting of U.S. tariffs from the table.
- The presentation of corporate results is decreasing, however, this week is going to be loaded with leading companies in the retail sector such as Walmart, Target, Macy's, The Home Depot, among others. On the other hand, the presentation of the Asian giant Alibaba and the technology company Nvidia stand out.
- Among the most relevant economic data of the week, we can mention the presentation of the retail sales data for November 16.
- The COP26 climate change summit issued an outcome document from which it can be noted that delegates from nearly 200 countries agreed to reduce coal use, end "inefficient" fossil fuel subsidies, impose stricter targets against burning coal next year and for developed countries to at least double their collective funding provisions aimed at helping developing nations adapt to climate change by 2025.
- Federal Reserve Bank of Minneapolis President Neel Kashkari said Sunday that he expects inflation to continue over the next few months, but cautioned that the U.S. central bank should not overreact to elevated inflation as it is likely to be temporary.
- Cases of COVID-19 have rebounded in some countries, Germany is facing a record number of new cases, New Zealand is fighting the Delta variant and the Netherlands may soon impose a partial blockade. On the other hand, the United States has begun to ease travel restrictions for new countries.
- In the UK, the focus will be on Tuesday's employment data and Wednesday's inflation figures, as these data could confirm a rate hike at the Central Bank's December meeting.
- Japan's gross domestic product contracted by 0.8 1TDP3Q between July and September from the previous quarter, the figure has exceeded most analysts' forecasts and is mainly due to a further decline in household spending of 1.2 1TDP3Q.
- China's Internet regulator on Sunday published draft rules that would require Hong Kong-listed companies to undergo a cybersecurity review if the sale of shares could implicate national security, threatening a recent shift of technology groups to the territory.
- Airbus SE has said it cannot ramp up production of its single-aisle aircraft fast enough to meet demand and forecasts delivery constraints for another three years. Demand from airlines has increased, and on Sunday the company closed a new contract with Indigo Partners for the sale of 255 A321neo family aircraft.
Corporate Calendar
