Weekly Excerpt 07/26/2021
Weekly summary July 19 to 23
- The US equity market closed the week with new highs in its three main indexes. The week started with one of the worst days in months, however, good corporate results and calm messages from the FED have given investors a lot of confidence. Nine of the eleven sectors closed the week with positive returns, of which the communication and consumer discretionary sectors led the rally with gains of 3,24% and 2,85% respectively.
- Europe closed the week very positively, with all major indices in the green. The EuroStoxx 50 closed the week up 1.8% and is very close to setting new all-time highs. The Ibex35, one of the hardest hit indices since June has risen by 2.48%. The financial sector has been the most favored sector in the week with a rise of 4.68% (SXFP). At the meeting held by the ECB, it has been announced that interest rates will remain low for a longer period of time, and could even be reduced. On the other hand, it was decided to lift the ban imposed on banks to distribute dividends.
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- So far 24% of S&P 500 companies have reported Q2 2021 results, of which 88% have reported earnings per share above estimates. If the data maintains this trend it is estimated that the percentage of above-expected results would be the highest since Factset has been keeping records of these metrics.
- However, the employment data on Thursday 22nd (better than expected data) and the increase in delta virus variants could be signs that there is still a long battle to recover the economy which may create some short-term doubts on the part of investors.
- The oil price has had a very volatile week. The WTI crossed the USD 66 barrier, levels it had not touched since the end of May, but subsequently rebounded significantly and closed near the levels of the previous week (USD 72).
- The Chinese corporate stock market suffered its worst drop in two years during the week. In the face of risks posed by a growing regulatory crackdown on the Asian nation's technology industry.
| AMERICA | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| DOW JONES | 35.061,55 | 1,08% | 14,56% |
| S&P 500 | 4.411,79 | 1,96% | 17,46% |
| NASDAQ | 14.836,99 | 2,84% | 15,12% |
| EUROPE | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| Euro Stoxx 50 | 4.109,10 | 1,82% | 15,66% |
| FTSE 100 | 7.027,58 | 0,28% | 8,78% |
| CAC 40 | 6.568,82 | 1,68% | 18,33% |
| DAX | 15.669,29 | 0,83% | 14,22% |
| IBEX 35 | 8.717,20 | 2,48% | 7,97% |
| SMI | 12.130,83 | 0,87% | 13,34% |
| ASIA | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| NIKKEI 225 | 27.548,00 | -3,71% | 0,38% |
| HSI | 27.321,98 | -2,44% | 0,33% |
| CSI 300 | 5.089,23 | -0,11% | -2,34% |
| BONUS | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| US TREASURY 10Y | 1,28 | -0,82% | 121,63% |
| US Generic Govt 2 Yr | 0,20 | -10,58% | 30,93% |
| GERMANY 10 YR | - 0,42 | -18,90% | 12,68% |
| UK 10 Yr | 0,58 | -6,70% | 370,97% |
| COMMODITIES | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| WTI | 72,08 | 0,38% | 48,58% |
| BRENT | 74,14 | 0,75% | 43,15% |
| NATURAL GAS | 4,05 | 10,10% | 59,28% |
| CORN | 547,00 | -1,62% | 13,02% |
| WHEAT | 679,00 | -1,95% | 6,01% |
| GOLD $/oz | 1.801,80 | -0,73% | -4,92% |
| SILVER $/Oz | 25,22 | -2,17% | -4,52% |
| COPPER | 445,60 | 2,85% | 26,63% |
| PLATINUM | 1.063,95 | -3,71% | -0,76% |
| COINS | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| EURUSD | 1,177 | -0,30% | -3,64% |
| AUDUSD | 0,736 | -0,50% | -4,29% |
| CADUSD | 0,796 | 0,39% | -1,33% |
| CHFUSD | 1,087 | -0,02% | 3,93% |
| GBPUSD | 1,375 | -0,14% | 0,57% |
| CNYUSD | 0,154 | -0,03% | -0,70% |
| JPYUSD | 0,009 | -0,42% | 7,00% |
| USDBRL | 5,208 | 1,81% | -0,17% |
| USDMXN | 20,065 | 0,87% | -0,75% |
| USDCOP | 3869,56 | 1,77% | -11,37% |
| XBTUSD | 32456,41 | 1,93% | 11,93% |
To keep in mind during the week
- A very important week in terms of corporate results. By now, 24% of the companies that make up the S&P500 have reported results for the second quarter of the year. This week it is the turn of the largest companies in the benchmark index, including Amazon, Apple, Alphabet, Microsoft, Tesla, among others.
- The Federal Reserve begins a new two-day meeting on Tuesday, which is expected to discuss the pace of the tapering of the central bank's purchase program, inflation expectations and a decision on monetary policy. Afterwards, financial markets will be watching for a press conference by Fed Chairman Jerome Powell.
- Senators negotiating passage of the $579 billion infrastructure package are aiming to wrap up negotiations early this week. A pending five-week recess scheduled to begin Aug. 9 is motivating the 22-member bipartisan group to reach an agreement after Republicans rejected Senate Majority Leader Chuck Schumer's deadline for action last week.
- Leading U.S. infectious disease expert Anthony Fauci warned that the nation is moving in the "wrong direction" to combat a new wave of the pandemic as vaccines dwindle, and said a booster shot may be needed, especially for the most vulnerable. The number of cases has increased by 62% from the previous week and the number of COVID-19 cases in the U.S. has reached its highest level since April.
Other important points
- Hong Kong and mainland Chinese stocks remain under pressure as the Asian government decided to widen its crackdown on the technology sector over the weekend. Chinese regulators have confirmed plans to force the lucrative online training business to become a "not-for-profit" activity, in what many have interpreted as an attempt to force down tuition fees. That in turn appears to be driven by concerns about the country's low birth rate and the demographic problems it will face.
- Positive weekend for cryptocurrencies, the Bitcoin rallied on Sunday by approximately 15% to trade above USD 39,000. Among the main factors that have supported this rally would be the fact that. Amazon could be testing the creation of a digital currency of its own. There are rumors that the company could accept payment with cryptocurrencies in its online store by the end of 2021.
- In Europe, investors' attention will be focused on second-quarter GDP data due on Friday. It is expected to show how strongly the bloc's economy is recovering after a double-dip recession.
Corporate Calendar
Before market opening
| Monday 26 | Tuesday 27th | Wednesday 28 | Thursday 29th | Friday 30 |
|---|---|---|---|---|
| Hasbro | 3M | Spotify | Arcelormittal | Enbridge |
| Otis | General Electric | Boeing | PG&E | Exxon |
| Alliance Resource | UPS | Pfizer | Astrazeneca | Caterpillar |
| Bank of Hawaii | Jet Blue | McDonalds | Valero | Abbvie |
| Phillips | WM | Shopify | Master Card | P&G |
| Tilray | Altria |
After market close
| Monday 26 | Tuesday 27th | Wednesday 28 | Thursday 29th | Friday 30 |
|---|---|---|---|---|
| Tesla | Apple | Amazon | ||
| Logitech | Microsoft | PayPal | ||
| AGNC | AMD | Ford | Twiio | |
| PCA | Alphabet | Qualcomm | Gilead | |
| Starbucks | Service New | T Mobile | ||
| Visa | Spirit | Upwork |
Economic Calendar
Monday 26
ALE: Ifo index of business confidence in Germany
USA: New home sales
Tuesday 27th
USA: Durable Goods Orders (underlying)
USA: The Conference Board Consumer Confidence
Wednesday 28
CAD: Underlying CPI data
USA: FOMC Statement and Interest Rate Decision
Thursday 29th
USA: GDP Data
USA: New claims for unemployment benefits
ALE: Unemployment change data
Friday 30
EURO: Euro zone CPI
CNY: Manufacturing PMI
