Weekly Excerpt 04/26/2021
Weekly summary from April 19 to 23
- First, the U.S. equity market closed the week with slight declines. As a result, the worst performing index was the Dow Jones with a drop of -0.46%. However, the economic data presented during the week was quite solid and good corporate results continue to be a bullish factor in the market. Currently, 84 % of S&P 500 companies have posted better-than-expected results, a figure above the usual average.
- As for Europe, it is known that it closed the week negatively for the main equity indices with the exception of the Ibex 35, with a slight rise of 0.06%. Thus, on April 20, the EuroStoxx 50 suffered its biggest daily drop since February and the Ibex 35 its worst session of 2021, amid doubts that Janssen (J&J) vaccines will not be approved for use. Finally, the EMA has given the green light and the target of vaccinating 70% of the population by July is expected to be achieved. Finally, the euro has achieved its third consecutive week of gains against the dollar, trading at 1.21 at the close of trading on Friday.
- Among the highlights of the week, U.S. President Joe Biden is reportedly contemplating raising the tax rate on higher incomes, starting at $400,000 per year, as well as on capital gains for individuals earning more than $1 million per year. According to some studies, in a time span of one year, one of these measures should not have a considerable impact on market behavior but it could mean a greater outflow of funds in the short term. In any case, analysts believe that passing a measure of this magnitude will not be an easy task for the U.S. Senate.
| AMERICA | Δ %5 Days | Δ % YTD | |
|---|---|---|---|
| DOW JONES | 34,043.49 | -0.46% | 11.23% |
| S&P500 | 4,180.17 | -0.13% | 11.29% |
| NASDAQ | 14,016.81 | -0.25% | 8.76% |
| EUROPE | Δ %5 Days | Δ % YTD | |
|---|---|---|---|
| Euro Stoxx 50 | 4,013.34 | -0.49% | 12.97% |
| FTSE 100 | 6,938.56 | -1.15% | 7.40% |
| CAC 40 | 6,257.94 | -0.46% | 12.73% |
| DAX | 15,279.62 | -1.17% | 11.38% |
| IBEX 35 | 8,618.60 | 0.06% | 6.75% |
| SMI | 11,200.54 | -0.55% | 4.64% |
| ASIA | Δ %5 Days | Δ % YTD | |
|---|---|---|---|
| NIKKEI 225 | 29,020.63 | -2.23% | 5.74% |
| HSI | 29,078.75 | 0.38% | 6.78% |
| CSI 300 | 5,135.45 | 3.41% | -1.46% |
| BONUS | Δ %5 Days | Δ % YTD | |
|---|---|---|---|
| US TREASURY 10Y | 1.56 | -1.40% | 158.69% |
| US Generic Govt 2 Yr | 0.16 | -2.30% | -29.07% |
| GERMANY 10 YR | - 0.26 | 1.85% | 39.39% |
| UK 10 Yr | 0.74 | -2.70% | 154.80% |
| COMMODITIES | |||
|---|---|---|---|
| WTI | 62.14 | -1.57% | 28.07% |
| BRENT | 66.10 | -1.00% | 27.61% |
| NATURAL GAS | 2.72 | 1.64% | 7.33% |
| CORN | 658.00 | 12.38% | 35.95% |
| WHEAT | 712.50 | 9.20% | 11.24% |
| GOLD $/oz | 1,777.10 | -0.11% | -6.23% |
| SILVER $/Oz | 26.05 | -0.23% | -1.39% |
| COPPER | 433.60 | 4.03% | 23.19% |
| PLATINUM | 1,231.69 | 2.15% | 14.90% |
| COINS | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| EURUSD | 1.210 | 0.94% | -0.97% |
| AUDUSD | 0.776 | 0.28% | 0.79% |
| CADUSD | 0.802 | 0.34% | -2.08% |
| CHFUSD | 1.095 | 0.72% | 3.21% |
| GBPUSD | 1.388 | 0.37% | 1.54% |
| CNYUSD | 0.154 | 0.37% | -0.47% |
| JPYUSD | 0.009 | 0.84% | 4.43% |
| USDBRL | 5.486 | -2.32% | -5.22% |
| USDMXN | 19.831 | -0.44% | 0.41% |
| USDCOP | 3639.63 | 0.83% | -5.77% |
| XBTUSD | 51317.26 | -17.24% | 76.80% |
To be taken into account
- Investors' attention will be focused on what will be the busiest week of the first quarter with around 180 S&P500 companies reporting results. Among the companies that stand out are the giants of the technology sector such as Alphabet, Apple, Amazon, Microsoft and on the other hand it will be the turn of Tesla, Boeing, Caterpillar, General Electric, Ford among others.
- However, the Federal Reserve will hold a new monetary policy meeting that ends on April 28th. Therefore, investors are waiting to know how they might act considering the accelerated U.S. economic recovery and the increase in inflation after consumer prices rose to the highest levels in more than 8 and a half years.
- In addition, the global chip shortage could last much longer than expected. The high demand has exceeded the capacity of semiconductor manufacturers, so shortages are expected for different industrial sectors.
- As U.S. first quarter GDP data will be released on Thursday the 29th, investors will be watching to see if economic activity has returned to pre-pandemic levels.
- The week's focus will also be on new news regarding the new infrastructure spending package, tax proposals and possible tax increases to address it. In addition, U.S. President Joe Biden is expected to address a joint session of Congress on Wednesday 28th.
Other important points
- On the other hand, according to a senior EU official, Americans who have been vaccinated against COVID-19 could travel to Europe in the summer, which would be easing current restrictions. Since the EU largely shut down non-essential travel more than a year ago.
- As for the Commerce Department, it is said to release personal consumption expenditures (PCE) inflation figures on Friday, April 30. Additionally, the report is expected to indicate that PCE rose 0.31 PCE3T after rising 0.11 PCE3T the previous month. In fact, the U.S. central bank uses the core PCE as a tool to help determine whether to raise or lower interest rates.
- In addition to tensions between the world's two largest powers, Chinese companies are starting to list in the US at the fastest pace in history. As a result, companies have raised eight times more than in the same period in 2020 ($6.6 billion).
- Finally, bitcoin has started this week trading above USD 50,000 levels, the previous week it had recorded declines of more than 16%,
Corporate calendar
Before market opening
| Monday 26 | tuesday 27 | wednesday 28 | Thursday 29th | Friday 30 |
|---|---|---|---|---|
| Phillips | UPS | Boeing | Caterpillar | Exxon Mobil |
| Bank of Hawaii | General Electric | Shopify | Sandstorm | Abbvie |
| First Bancorp | 3M | Spotify | Merck | Colgate- Palmolive |
| Alliance Resource Partners | Lilly | Teva | McDonalds | The Clorox Co. |
| CheckPoint | BP Plc | ADP | Domino's | AstraZeneca |
| Albertsons | Waste Management | CME Group | MasterCard | Chevron |
After market close
