Weekly Excerpt 06/28/2021
Weekly summary from June 21 to 28.
- The US equity market closed the week in positive territory. The S&P500 closed the day Friday setting new highs, with all eleven sectors in positive territory. The Dow Jones has achieved a gain of 3,44% on the week, in which NIKE's performance stood out with a rise of 20,20% on Friday, following the presentation of its corporate results.
- In Europe, the week closed positively for the main equity indices. So far in June, the only index that has failed to turn positive is the Ibex 35, with a return of -0.59%.
- Among the highlights of the week, U.S. President Joe Biden has announced that an agreement has finally been reached on the infrastructure package. It is an investment of 1.2 trillion dollars over eight years and is not expected to be fully financed by a tax increase. Congressional approval is still pending.
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- The market has taken kindly to the announcement by some of the senior leaders of the US Federal Reserve that they are in no hurry to tighten monetary policy and that the rise in inflation is transitory. Of note, core personal consumption expenditures inflation (the Fed's preferred measure of inflation) came in at 3.4% on Friday the 25th, its highest level in nearly 30 years.
- Oil has closed another positive week with rises of 3.36% for WTI and 3.52% for Brent, which has managed to pass the USD 75 mark, something it has not achieved since 2018. The week has been positive for precious metals, which have managed to recover in a small percentage the large losses of a week ago. The month of June is not being positive at all for gold which is having its worst month since 2016, with a fall of -7%.
| AMERICA | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| DOW JONES | 34.433,84 | 3,44% | 12,51% |
| S&P500 | 4.280,70 | 2,74% | 13,97% |
| NASDAQ | 14.360,39 | 2,35% | 11,42% |
| EUROPE | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| Euro Stoxx 50 | 7.136,07 | 1,69% | 10,46% |
| FTSE 100 | 6.622,87 | 0,82% | 19,30% |
| CAC 40 | 15.607,97 | 1,04% | 13,77% |
| DAX | 9.095,00 | 0,71% | 12,65% |
| IBEX 35 | 11.999,70 | 0,49% | 12,11% |
| SMI | 11.941,25 | 0,84% | 11,56% |
| ASIA | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| NIKKEI 225 | 29.066,18 | 0,35% | 5,91% |
| HSI | 29.288,22 | 1,69% | 7,55% |
| CSI 300 | 5.239,97 | 2,69% | 0,55% |
| BONUS | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| US TREASURY 10Y | 1,52 | 5,98% | 122,30% |
| US Generic Govt 2 Yr | 0,27 | 4,72% | 43,30% |
| GERMANY 10 YR | - 0,16 | 22,56% | 66,88% |
| UK 10 Yr | 0,78 | 3,47% | 405,20% |
| COMMODITIES | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| WTI | 74,05 | 3,36% | 52,62% |
| BRENT | 76,10 | 3,52% | 46,91% |
| NATURAL GAS | 3,50 | 8,74% | 37,69% |
| CORN | 636,50 | -2,86% | 31,51% |
| WHEAT | 637,00 | -3,89% | -0,55% |
| GOLD $/oz | 1.776,60 | 0,49% | -6,25% |
| SILVER $/Oz | 26,09 | 0,45% | -1,23% |
| COPPER | 429,20 | 3,25% | 21,97% |
| PLATINUM | 1.110,72 | 6,44% | 3,60% |
| COINS | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| EURUSD | 1,194 | 0,60% | -2,30% |
| AUDUSD | 0,759 | 1,48% | -1,35% |
| CADUSD | 0,813 | 1,40% | -3,45% |
| CHFUSD | 1,091 | 0,66% | 3,62% |
| GBPUSD | 1,388 | 0,50% | 1,53% |
| CNYUSD | 0,155 | -0,05% | -1,08% |
| JPYUSD | 0,009 | -0,51% | 7,23% |
| USDBRL | 4,934 | -3,06% | 5,35% |
| USDMXN | 19,824 | -4,04% | 0,46% |
| USDCOP | 3731,85 | -0,36% | -8,10% |
| XBTUSD | 32215,31 | -9,30% | 11,10% |
To be taken into account
- Financial markets will be closely watching the U.S. employment report on Friday, July 2. Analysts expect the creation of 600,000 new jobs, which would be the highest in three months. The data is expected to show an acceleration in the rehiring process, which could help alleviate some of the labor shortages reported in the economy lately.
- With oil marking prices not seen since 2018, investors will be looking ahead to a meeting of OPEC+ members (and their allies) to review the oil situation in the global market. Another boost in production is expected as the demand outlook continues to recover.
- The first half of the year is practically coming to an end. The first half of the year is on track to post its second strongest gain for a first half since the turn of the century. In what was the second quarter of the year, according to Factset data, 103 S&P 500 companies have issued EPS guidance for the coming quarter. This number is above the five-year average (100). Of these 103 companies, 37 have issued negative EPS guidance and 66 have issued positive EPS guidance. The number of companies issuing negative EPS guidance is well below the five-year average (63) , while the number of companies issuing positive EPS guidance is well above the five-year average of 37.
- In Europe, the focus will be on June's inflation figures. Eurozone inflation rose above the ECB's 2% target in May, and for now some central bankers consider inflationary pressures to be temporary and others have begun to publicly mention the possibility that recent price spikes could turn into a longer-term trend.
- European Union countries on Monday gave final approval to a law that makes legally binding greenhouse gas emissions targets set by the bloc. Negotiators from the Parliament and EU member states reached agreement in April on the European Climate Law, which sets targets to reduce net EU emissions by 55% by 2030 from 1990 levels and to eliminate them by 2050.
Other important points
- India has redirected at least 50,000 additional troops to its border with China in a historic shift toward an offensive military posture against the world's second-largest economy.
- China's government has ordered virtually all of Tesla's 285,000 Tesla vehicles to be checked for safety concerns. China's State Administration of Market Regulation said that the vehicles' autopilot systems can activate automatically, which could lead to crashes from sudden acceleration.
- The Boeing Company has received a letter from the U.S. Federal Aviation Administration (FAA), mentioning that its 777X aircraft is not yet ready for a significant certification step and warned that "realistically" it will not have authorization until mid to late 2023.
- The German carmaker Volkswagen has set a definitive date to stop manufacturing combustion-engine cars in Europe. By 2035 there will be no more new gasoline- or diesel-powered Volkswagens on the European continent. It is expected to take a while longer to achieve the aforementioned target in the United States and China due to the lack of a policy and infrastructure framework around electric cars.
- In a further setback for the cryptocurrency sector, the UK has announced that Binance, one of the world's largest cryptocurrency platforms, cannot conduct any regulated activity and issued a warning to consumers about the platform that is coming under increasing scrutiny globally.
- The highly contagious Delta strain of COVID-19 is prompting new restrictions in some countries. Australia has imposed restrictions on millions of people, South Africa banned alcohol and closed schools to combat rising infections, while Malaysia extended a nationwide lockdown that was due to end Monday. Many have begun to wonder whether COVID-19 cases could rise sharply as the weather turns colder in a few months.
Economic calendar
Monday 28
BRA: BCB Target Market Report
USA: Remarks by FOMC Member Williams
Tuesday 29
ESP: CPI data
ALE: CPI Data
Wednesday 30
CNY: Manufacturing PMI
GBP: GDP data
EURO: CPI data in the euro zone
USA: ADP Nonfarm Employment Change Data
Thursday 01
CNY: Caixin Manufacturing PMI
ALE: Germany Manufacturing PMI
USA: ISM manufacturing PMI data
USA: New claims for unemployment benefits
GBP: Appearance of BoE's Gov Bailey
Friday 02
USA: Non-agricultural data
USA: Unemployment rate
EURO: Appearance of Lagarde, President of the ECB
