Weekly Excerpt 11/29/21
Weekly Summary November 22-26
- The equity market closed the week in negative territory. The major indices had double-digit declines and all sectors of the S&P 500 closed in the red. The hardest hit sector was energy with a drop of -4,04%.
- The market in Europe has had its worst week in the last 2 months. The worst performing index has been the Ibex 35, down -4,96% (its worst day since June 2020). Investors' fear of a possible shutdown in some places has put a lot of pressure on sectors such as travel and tourism (SXTP), which has been the most affected, with a fall of -13,62%.
- The highlight of the week has been Joe Biden's nomination of Jerome Powell for a second term as head of the U.S. Federal Reserve and at the same time the elevation of Governor Lael Brainard to the position of Vice Chair. This announcement has given investors a sense of continuity and stability, so extreme changes in monetary policy should not be expected in the near term.
- News of a new variant of COVID-19 with an even faster rate of spread than the Delta variant in South Africa has put pressure on markets globally. Fears of further travel restrictions have been reflected in the markets driving the transportation and leisure sector to levels seen at the beginning of the pandemic but at the same time benefiting pharmaceutical companies such as Pfizer with a rise of +6.11% on Friday.
- Among the most relevant economic data of the week, the number of workers filing for unemployment benefits in the U.S. fell to a 52-year low. The figure came in at 199,000, down from 270,000 the previous week.
- The commodity market has not taken the news of a new COVID-19 variant well at all, oil has been hit hard and has seen a drop of over 10%, on the other hand gold has closed down - 2.3% for the week.
| AMERICA | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| DOW JONES INDUS. AVG | 34.899,34 | -2,71% | 14,03% |
| S&P 500 INDEX | 4.594,62 | -2,34% | 22,33% |
| NASDAQ COMPOSITE | 15.491,66 | -3,14% | 20,20% |
| EUROPE | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| Euro Stoxx 50 Pr | 4.089,58 | -6,13% | 15,11% |
| FTSE 100 INDEX | 7.044,03 | -2,49% | 9,03% |
| CAC 40 INDEX | 6.739,73 | -5,24% | 21,41% |
| DAX INDEX | 15.257,04 | -5,59% | 11,21% |
| IBEX 35 INDEX | 8.402,70 | -4,00% | 4,07% |
| SWISS MARKET INDEX | 12.199,21 | -2,76% | 13,97% |
| ASIA | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| NIKKEI 225 | 28.751,62 | -2,86% | 4,76% |
| HANG SENG INDEX | 24.080,52 | -3,87% | -11,57% |
| CSI 300 INDEX | 4.860,13 | -0,61% | -6,74% |
| BONUS | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| US TREASURY 10Y | 1,47 | -4,73% | 67,09% |
| US Generic Govt 2 Yr | 0,50 | -1,72% | 214,59% |
| GERMANY 10 YR | - 0,34 | 1,94% | 43,03% |
| UK 10 Yr | 0,83 | -6,14% | 193,59% |
| COMMODITIES | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| WTI | 68,15 | -13,75% | 40,46% |
| BRENT | 72,72 | -7,82% | 40,39% |
| NATURAL GAS | 5,45 | 11,12% | 114,53% |
| CORN | 586,75 | 2,40% | 21,23% |
| WHEAT | 825,50 | 0,67% | 28,88% |
| GOLD $/oz | 1.785,50 | -4,08% | -5,78% |
| SILVER $/Oz | 23,11 | -7,20% | -12,51% |
| COPPER | 428,35 | -0,49% | 21,72% |
| PLATINUM | 958,39 | -7,33% | -10,61% |
| COINS | QUOTE | Δ %5 Days | Δ % YTD |
|---|---|---|---|
| EURUSD | 1,13 | 0,24% | -7,36% |
| AUDUSD | 0,71 | -1,67% | -7,54% |
| CADUSD | 0,78 | -1,09% | 0,37% |
| CHFUSD | 1,08 | 0,64% | 4,28% |
| GBPUSD | 1,33 | -0,85% | -2,44% |
| CNYUSD | 0,16 | -0,10% | -2,05% |
| JPYUSD | 0,01 | 0,71% | 9,58% |
| USDBRL | 5,60 | -0,26% | -7,10% |
| USDMXN | 21,90 | 5,12% | -9,05% |
| USDCOP | 4.015,70 | 2,54% | -14,59% |
| XBTUSD | 54.315,30 | -6,17% | 87,30% |
To keep in mind during the week
- Investors will be watching the OPEC technical meetings, which have been moved to Wednesday, December 1 and Thursday, December 2 to allow time to assess the impact of the new "omicron" variant of COVID-19 on oil production.
- After the first news about a new variant of COVID-19, the WHO announced on Sunday that it is still too early to determine whether the omicron variant has a greater transmissibility or if the increase in infections has been caused by other factors, but that it has demonstrated a capacity for reinfection for those who have already had the disease in its other variations.
- The stability of the financial market will be marked by the news that may be generated by laboratories around the world investigating the Omicron strain, which could leave investors with weeks of uncertainty.
- Regarding macroeconomic data, an improvement in the unemployment rate is expected in Friday's 03 report but there is some concern among economists that the pace of this trend will be slowed when the federal vaccination mandate comes into play.
- November flash inflation in the Eurozone will be released on Tuesday, October's figure was 4.1% and many believe it will remain above the ECB's 2% target for next year. Fears of COVID-19 and inflation data loom over policymakers, who have to decide the fate of two ECB bond-buying plans in just three weeks.
- Investors will be watching base metals activity following positive announcements on China's industrial and construction activity.
- Nissan Motor Co. announced it will spend $17.59 billion over the next five years to accelerate vehicle electrification, betting that tighter carbon emissions restrictions will spur demand for electric and hybrid cars. Within its business plan, Japan's third-largest automaker said the company plans to introduce 23 electrified vehicles by 2030, including 15 electric vehicles (EVs), and plans to introduce all solid-state batteries by March 2029.
Economic Calendar
Monday 29
USA: Pending home sales
USA: Remarks by FOMC member Powell
Tuesday 30
CNY: Manufacturing PMI
ALE: Unemployment change in Germany
EURO: CPI in the euro zone
USA: The Conference Board Consumer Confidence
Wednesday 01
ALE: Ifo index of business confidence in Germany
USA: ADP non-farm employment change
USA: Appearance of Powell, Chairman of the Fed
USA: ISM manufacturing PMI
Thursday 25
USA: New claims for unemployment benefits
Friday 26
GBP: Composite and services PMI data
USA: Nonfarm payrolls
USA: Employment Rates Report
