Weekly Excerpt 06/21/2021
Weekly summary June 14-18
- The U.S. equity market closed the week in negative territory. The equity market has fallen for four consecutive days, marking the S&P's worst week since February 26. The Dow Jones fell -3,45% on the week, closing the second worst week of the year. The Nasdaq 100, unlike the rest, was able to maintain its bullish streak, rising 0.37% over last Friday and accumulating five consecutive weeks of gains.
- In Europe, the week closed negatively for the main equity indices. The declines of the main indices have been above -1%. The Spanish index (Ibex 35) suffered the worst fall, -1.9%, closing its second worst week of the year.
- The highlight of the week has been the message delivered by Jerome Powell after two days of meetings by Fed members. The Fed has projected a rate hike ahead of schedule and several board members have mentioned that they may soon begin discussing a tapering of the purchase program at upcoming meetings.
- Beyond the fact that the Central Bank maintains the message that inflation is a transitory problem, the fact that several members expect interest rates to be higher next year may indicate that monetary policy is expected to be tightened with the intention of managing the risks of rising prices.
- On the other hand, the Federal Reserve's message has supported the dollar's rally against the euro, which has had its worst week in fifteen months. The commodities sector had a negative week. One of the sharpest declines was suffered by copper with -9.20% for the week. Oil, on the other hand, maintained its good run and managed to close in positive territory again.
| AMERICA | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| DOW JONES | 33.290,08 | -3,45% | 8,77% |
| S&P500 | 4.166,45 | -1,91% | 10,93% |
| NASDAQ | 14.030,38 | -0,28% | 8,86% |
| EUROPE | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| Euro Stoxx 50 | 4.083,37 | -1,05% | 14,94% |
| FTSE 100 | 7.017,47 | -1,63% | 8,62% |
| CAC 40 | 6.569,16 | -0,48% | 18,33% |
| DAX | 15.448,04 | -1,56% | 12,61% |
| IBEX 35 | 9.030,60 | -1,89% | 11,85% |
| SMI | 11.941,25 | 0,84% | 11,56% |
| ASIA | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| NIKKEI 225 | 28.964,08 | 0,05% | 5,54% |
| HSI | 28.801,27 | 0,22% | 5,77% |
| CSI 300 | 5.102,47 | -3,21% | -2,09% |
| BONUS | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| US TREASURY 10Y | 1,44 | -0,95% | 103,01% |
| US Generic Govt 2 Yr | 0,25 | 72,92% | 31,45% |
| GERMANY 10 YR | - 0,20 | 26,84% | 50,86% |
| UK 10 Yr | 0,75 | 6,29% | 229,83% |
| COMMODITIES | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| WTI | 71,41 | 0,71% | 47,18% |
| BRENT | 73,18 | 0,67% | 41,27% |
| NATURAL GAS | 3,23 | -1,94% | 27,29% |
| CORN | 657,75 | -3,91% | 35,90% |
| WHEAT | 662,00 | -2,75% | 3,36% |
| GOLD $/oz | 1.767,90 | -5,83% | -6,71% |
| SILVER $/Oz | 25,86 | -8,14% | -2,11% |
| COPPER | 412,25 | -9,15% | 17,15% |
| PLATINUM | 1.043,48 | -9,33% | -2,67% |
| COINS | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| EURUSD | 1,186 | -2,02% | -2,88% |
| AUDUSD | 0,748 | -2,97% | -2,79% |
| CADUSD | 0,802 | -2,48% | -2,11% |
| CHFUSD | 1,084 | -2,71% | 4,30% |
| GBPUSD | 1,381 | -2,11% | 1,02% |
| CNYUSD | 0,155 | -0,93% | -1,13% |
| JPYUSD | 0,009 | -0,50% | 6,69% |
| USDBRL | 5,090 | -0,54% | 2,13% |
| USDMXN | 20,659 | 3,94% | -3,61% |
| USDCOP | 3745,40 | 4,33% | -8,43% |
| XBTUSD | 35517,30 | -4,40% | 22,49% |
To be taken into account
- Tensions between China and the rest of the world could be entering a new chapter. According to U.S. National Security Advisor Jake Sullivan, China will risk international isolation if it does not allow a "real" investigation on its territory into the origins of the virus that caused the COVID-19 pandemic.
- Following last Wednesday's Federal Reserve message, in which some officials have mentioned that they expect interest rates to rise in 2023 rather than 2024, investors will be closely watching Fed Chairman Jerome Powell's appearance before Congress on Tuesday the 22nd and comments from several other officials throughout the week.
- Among the economic highlights, investors will pay close attention to core PCE price index data (presumably the Fed's favorite inflation gauge), reports on new home sales and the weekly report on initial jobless claims.
- Big Tech companies (Apple, Amazon, Facebook, Google, Microsoft) will be in the spotlight as the U.S. House Judiciary Committee is expected to vote on a package of antitrust laws.
- The week will see one of the most anticipated events for e-commerce, the famous Amazon Prime Day, the e-commerce giant's annual sales extravaganza will take place from midnight on June 21 (Pacific time) until 11:59 p.m. on June 22.
Other important points
- A bipartisan infrastructure plan costing just over $1 trillion (about a quarter of what President Joe Biden initially proposed), has been gaining support in the U.S. Senate. The president has said he will have a response to the plan as soon as Monday after reviewing it.
- American Airlines (AAL) has announced that it will cancel about 1% of its flights in July in order to meet a surprising increase in travel demand as the airline struggles with unprecedented weather conditions and a labor shortage at some of its hubs. Through this move, the company hopes to bring additional resiliency and certainty to its summer operations.
- Billionaire investor William Ackman's company, Pershing Square Tontine Holdings (PSTH), has signed a deal to buy Universal Music Group's (UMG) 10% for about $4 billion. The transaction would give an estimated value of €35 billion ($42.5 billion) to the record label.
- China's crackdown on cryptocurrency mining appears to be expanding. According to some reports the city of Ya'an would aim to eliminate all Bitcoin and Ethereum mining operations in less than a year. On the other hand, according to China Business News government-owned power companies in Sichuan should stop supplying electricity to crypto mining projects immediately.
- The Bank of England will hold its latest policy meeting on Thursday 24. Most analysts expect no change in policy after the BoE said last month that it would slightly reduce the weekly pace of its bond purchases. The recent decision to delay full economic reopening by a month could be seen as a reason for policymakers to maintain their cautious stance.
Before market opening
| Monday 21 | Tuesday 22 | Wednesday 23 | Thursday 24 | Friday 25 |
|---|---|---|---|---|
| Plug Power | Winnebago | Darden | Jinko | |
| Korn Ferry | IHS Markit | Accenture | Carmax | |
| Cognyte | Patterson | Carnival | Paychex | |
| Jerash Holdings | IAI | Apogee |
After market close
| Monday 21 | Tuesday 22 | Wednesday 23 | Thursday 24 | Friday 25 |
|---|---|---|---|---|
| KB Home | Black Berry | |||
| H.B. Fuller | Fedex | |||
| Steel Case | Nike | |||
| Concentrix | Progress |
Economic Calendar
Monday 21
CNY: PBoC Prime Lending Rate
EURO: Appearance of Lagarde, President of the ECB
Tuesday 22
BRL: Minutes of the CMP meeting of the Central Bank of Brazil.
USA: Used home sales
USA: Appearance of Powell, Chairman of the Fed
Wednesday 23
ALE: Germany Manufacturing PMI
GBP: Composite, Manufacturing and Services PMI Data
USA : New Home Sales Data
Thursday 24
ALE: Ifo index of business confidence in Germany
GBP: Interest rate decision
USA: Durable goods orders
USA: GDP Data
USA: New claims for unemployment benefits
Friday 25
JPY: BoJ Monetary Policy Statements
GBP: Retail sales data
USA: PCE Price Index
