Weekly Excerpt 10/18/2021
Weekly Summary October 11 - 15
- The US equity market has managed to close its best week since July. All three major indices have closed positive, the market has reacted well to further details revealed about the US Federal Reserve's plan to begin tapering its asset purchase program.
- Strong corporate results and encouraging economic data have allowed ten of the eleven S&P 500 sectors to close the week in the green, with the sole exception of the communications sector. The leading sectors were materials, consumer discretionary and real estate with returns above 3.5%.
- The equity market in Europe has managed to close the week at its highest level in five weeks, posting its best weekly gain since March. The Stoxx 600 advanced 2.7% on the week, led by the Basic Resources +6.08% (SXPP), Real Estate +4.91%(SX86P) and Oil & Gas +3.81% (SXEP) sectors.
- Major companies in the financial sector have reported results above analysts' estimates, driven by very high earnings that have benefited from higher bond yields and the release of trillions of dollars that were in reserves to absorb potential losses.
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- For now, 80% of S&P 500 companies are beating earnings per share estimates for the third quarter of the year, a figure that is above the five-year average of 76%.
- The cryptocurrency sector has had a lot of attention on Friday after the U.S. Securities and Exchange Commission (SEC) gave its approval for the first Bitcoin ETF to begin trading next week in the U.S. Proshares has filed a prospectus addendum stating that it may go ahead with its index fund that will be linked to the movement of Bitcoin futures.
- About six funds indexed to the world's largest cryptocurrency are expected to list in the next two months.
America
| AMERICA | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| DOW JONES INDUS. AVG | 35.294,76 | 1,58% | 15,32% |
| S&P 500 INDEX | 4.471,37 | 1,82% | 19,04% |
| NASDAQ COMPOSITE | 14.897,34 | 2,18% | 15,59% |
Europa
| EUROPE | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| Euro Stoxx 50 Pr | 4.182,91 | 2,69% | 17,74% |
| FTSE 100 INDEX | 7.234,03 | 1,95% | 11,97% |
| CAC 40 INDEX | 6.727,52 | 2,55% | 21,19% |
| DAX INDEX | 15.587,36 | 2,51% | 13,62% |
| IBEX 35 INDEX | 8.997,00 | 0,47% | 11,44% |
| SWISS MARKET INDEX | 11.961,34 | 1,67% | 11,75% |
Asia
| ASIA | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| NIKKEI 225 | 29.068,63 | 3,64% | 5,92% |
| HANG SENG INDEX | 25.330,96 | 5,69% | -6,98% |
| CSI 300 INDEX | 4.932,11 | 0,04% | -5,36% |
Bonds
| BONUS | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| US TREASURY 10Y | 1,57 | -2,47% | 114,70% |
| US Generic Govt 2 Yr | 0,39 | 23,63% | 182,66% |
| GERMANY 10 YR | - 0,17 | -10,24% | 72,62% |
| UK 10 Yr | 1,11 | -4,50% | 514,44% |
Commodities
| COMMODITIES | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| WTI | 82,40 | 3,84% | 69,83% |
| BRENT | 84,80 | 2,93% | 63,71% |
| NATURAL GAS | 5,41 | -2,84% | 112,96% |
| CORN | 527,00 | -0,66% | 8,88% |
| WHEAT | 733,50 | -0,07% | 14,52% |
| GOLD $/oz | 1.766,70 | 0,59% | -6,78% |
| SILVER $/Oz | 23,35 | 2,84% | -11,59% |
| COPPER | 472,50 | 10,51% | 34,27% |
| PLATINUM | 1.058,24 | 2,88% | -1,29% |
Coins
| COINS | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| EURUSD | 1,16 | 0,27% | -5,04% |
| AUDUSD | 0,74 | 1,50% | -3,57% |
| CADUSD | 0,81 | 0,84% | -2,87% |
| CHFUSD | 1,08 | 0,45% | 4,32% |
| GBPUSD | 1,37 | 0,92% | 0,51% |
| CNYUSD | 0,16 | 0,12% | -1,40% |
| JPYUSD | 0,01 | -1,80% | 10,62% |
| USDBRL | 5,46 | -1,14% | -4,72% |
| USDMXN | 20,34 | -1,77% | -2,07% |
| USDCOP | 3.767,47 | 0,02% | -8,96% |
| XBTUSD | 62.217,30 | 15,24% | 114,58% |
To keep in mind during the week
- Investors will be closely watching the start of trading of the first Bitcoin ETF in the United States. Proshare's exchange-traded fund is scheduled to begin trading on Tuesday, which will be based on Bitcoin futures rather than the market price of the cryptocurrency.
- Investors' attention will be focused on the presentation of corporate results in all sectors, after a very auspicious start by the major U.S. banks.
- Netflix will be the first company of the famous FAANG group to present results for the third quarter. The company that has recently presented the Squid Game series has mentioned that the launch of the series has been the biggest in its history and according to Bloomberg the mega success will generate almost USD 900 million in value for the company. The cost of producing the series was only USD 21.4 million.
- China's GDP data for the third quarter of the year has shown the slowest pace of growth in the last year. The 4.9% growth figure has fallen short of analysts' estimates which forecast growth of 5.2% The economic slowdown has been affected by energy shortages, supply chain bottlenecks and some sporadic COVID-19 outbreaks.
Other important points
- In the face of heightened general concerns over the problems of real estate developer Evergrande, People's Bank of China Governor Yi Gang has mentioned that the country's authorities have the capacity to contain potential economic and financial system risks.
- In the UK, the focus will be on inflation (CPI) data due out on Wednesday. The data is expected to show the fastest rise in inflation in almost nine years. This has raised expectations that the Bank of England would be the first of the major central banks to raise interest rates before the end of the year to tackle rising inflation.
- World ports are increasingly paralyzed as supply crises from the pandemic intensify, threatening to spoil the holiday shopping season, erode corporate profits and drive up consumer prices.
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- Oil prices have started the week reaching multi-year high prices. Brent oil futures reached their highest prices since October 2018 and WTI futures their highest level since October 2014.
- Facebook Inc. has announced that it plans to hire 10,000 workers in the European Union over the next five years to help build the so-called metaverse, a nascent online world where people exist and communicate in shared virtual spaces.
- Apple will hold a corporate event on October 18 at which it is expected to launch new Mac and MacBook Pro products. The new MacBook Pros are expected to include the company's new Silicon chips, a mini-LED display, an HDMI port and MagSafe for charging. There are rumors that the company will unveil new AirPods 3 and that a satellite phone service of some sort will be discussed.
- Goldman Sachs has announced that it has received approval from China's securities regulator to take full control of its securities business in the Asian continent. The U.S. bank will purchase the remainder of Goldman Sachs Gao Hua Securities Company Ltd. and rename it Goldman Sachs (China) Securities Company Ltd.
Corporate calendar
Before market opening
| Monday 18 | Tuesday 19 | Wednesday 20 | Thursday 21 | Friday 22 |
|---|---|---|---|---|
| State Street | Johnson & Johnson Johnson | Verizon | AT&T | American Express |
| Albertsons | Halliburton | Nasdaq | FreePort McMoran | Schlumberger |
| Phillips | P&G | Nextera Energy | Valero | Honeywell |
| Philip Morris | Biogen | Southwest | Cliffs | |
| American Airlines | Seagate |
After market close
| Monday 18 | Tuesday 19 | Wednesday 20 | Thursday 21 | Friday 22 |
|---|---|---|---|---|
| Steel Dynamics | Netflix | Tesla | Snap Inc | |
| First Bank | United Airlines | IBM | Intel | |
| Hexcel | Interactive Brokers | Sands | Chipotle |
Economic Calendar
Monday 18
CNY: GDP data
CNY: Industrial Production Index Data
Tuesday 12
GBP: Appearance of BoE's Gov Bailey
USA: Building Permits Data
Wednesday 13
CNY: PBoC Prime Lending Rate
GBP: CPI Data
USA: IEA crude oil inventories
EURO: CPI in the euro zone
Thursday 14
USA: Philadelphia Fed Manufacturing Index
USA: New claims for unemployment benefits
USA: Used home sales
Friday 15
ALE: Manufacturing PMI data
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