Weekly Excerpt 12/20/21
Weekly Summary December 13-17
- The U.S. large cap equity market closed negative, especially the Nasdaq technology companies.
- In Europe, markets seem to have followed a similar path, which led them to close the week in the negative, with the biggest blow having been received by France.
- Producer prices rose more than expected in November as supply constraints persisted, generating the largest annual gain since the series was refreshed 11 years ago and supporting the view that inflation could remain uncomfortably high for some time.
- Tuesday's Labor Department report, which also showed strong growth in core producer inflation, followed last Friday's news that annual consumer prices rose the most since 1982 in November. Sputtering inflation complicates President Joe Biden's economic agenda, including a $1.75 trillion social policy and climate bill stalled in Congress.
- The Federal Reserve said Wednesday it would end its pandemic-era bond purchases in March and pave the way for three interest rate hikes of 1/4 percentage point by the end of 2022 as the economy nears full employment and the U.S. central bank ramps up inflation.
| AMERICA | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| DOW JONES INDUS. AVG | 35.365,44 | -1,68% | 15,55% |
| S&P 500 INDEX | 4.620,64 | -1,94% | 23,02% |
| NASDAQ COMPOSITE | 15.169,68 | -2,95% | 17,70% |
| EUROPE | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| Euro Stoxx 50 Pr | 4.161,35 | -0,90% | 17,13% |
| FTSE 100 INDEX | 7.269,92 | -0,30% | 12,53% |
| CAC 40 INDEX | 6.926,63 | -0,93% | 24,77% |
| DAX INDEX | 15.531,69 | -0,59% | 13,21% |
| IBEX 35 INDEX | 8.311,60 | -0,58% | 2,95% |
| SWISS MARKET INDEX | 12.715,48 | 0,85% | 18,80% |
| ASIA | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| NIKKEI 225 | 28.545,68 | 0,38% | 4,01% |
| HANG SENG INDEX | 23.192,63 | -3,35% | -14,83% |
| CSI 300 INDEX | 4.954,76 | -1,99% | -4,92% |
| BONUS | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| US TREASURY 10Y | 1,40 | -5,50% | 50,29% |
| US Generic Govt 2 Yr | 0,64 | -2,56% | 426,94% |
| GERMANY 10 YR | - 0,38 | -9,03% | 33,68% |
| UK 10 Yr | 0,76 | 2,36% | 164,46% |
| COMMODITIES | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| WTI | 70,86 | -1,13% | 46,04% |
| BRENT | 73,52 | -2,17% | 41,93% |
| NATURAL GAS | 3,69 | -5,99% | 45,33% |
| CORN | 593,25 | 0,81% | 22,57% |
| WHEAT | 775,00 | -0,90% | 21,00% |
| GOLD $/oz | 1.803,80 | 1,17% | -4,82% |
| SILVER $/Oz | 22,51 | 1,57% | -14,78% |
| COPPER | 429,10 | 0,19% | 21,94% |
| PLATINUM | 935,80 | -1,04% | -12,71% |
| COINS | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| EURUSD | 1,12 | -0,65% | -7,99% |
| AUDUSD | 0,71 | -0,66% | -7,40% |
| CADUSD | 0,78 | -1,30% | 1,25% |
| CHFUSD | 1,08 | -0,37% | 4,45% |
| GBPUSD | 1,32 | -0,21% | -3,11% |
| CNYUSD | 0,16 | -0,09% | -2,32% |
| JPYUSD | 0,01 | -0,29% | 10,06% |
| USDBRL | 5,69 | 1,37% | -8,57% |
| USDMXN | 20,83 | -0,27% | -4,39% |
| USDCOP | 4.028,13 | 3,25% | -14,86% |
| XBTUSD | 46.873,02 | -2,25% | 61,65% |
To keep in mind during the week
- Investors will be watching a variety of economic data over the course of the week, including December's Consumer Confidence index and Thursday's New Home Sales, Consumer Spending and Durable Goods Orders.
- In the UK, private sector growth slumped in December to a 10-month low, PMIs showed, and inflation above 5% could force the Bank of England to raise interest rates next year. Final UK GDP data for the third quarter will be presented on December 22.
- The Democratic Senator for West Virginia, Joe Manchin, announced this Sunday that he is withdrawing his crucial support for the 1.9 trillion dollar social spending bill. The bill pushed by U.S. President Joe Biden to improve social conditions for the country's workers and allocate a larger budget to the fight against climate change. The setback dealt by Manchin could be a lethal blow to the aspirations of the proposal, pending approval in the Senate.
- Dr. Anthony Fauci, White House chief medical adviser, said he expects the nation's coronavirus cases to reach record levels this winter, putting ``significant stress'' on hospital systems in some regions with low vaccination rates, driven by the highly contagious Omicron variant.
- Europe's largest countries are weighing further restrictions to combat a surge in COVID-19 infections, while the prospect of more blockades is considered unlikely in the U.S. Critical week of decisions could disrupt the Christmas and New Year vacations.
- Europe is bracing for power shortages this week as freezing weather is set to boost demand at a time when supply simply cannot keep up.
Economic Calendar
Monday 20
CNY: PBoC Prime Lending Rate
Tuesday 21
GBP: Retail sales
Wednesday 22
JPY: BoJ Monetary Policy Statements
GBP: GDP data
USA: GDP Data
USA: The Conference Board Consumer Confidence
USA: Used home sales
Thursday 23
USA: New claims for unemployment benefits
USA: Durable goods orders
Friday 24
Festivity
