Thursday, October 6

Europe prolongs the rises, with London’s FTSE 100 leading the way

The European stock exchanges opened the year in green yesterday with rises that exceeded 1% in the French and Italian stock exchanges, thus prolonging the famous Christmas rally that “unofficially” will end today, the second session of the year. By sectors, it is worth highlighting the great performance that the values ​​of the automobile industry had yesterday in the European stock markets, as well as those of the oil sector, the latter encouraged by the new rebound that the price of this raw material experienced yesterday, and the of the leisure and tourism sector, led in this case by the airlines. The great “defeated” yesterday was the health sector, a typically defensive sector, which highlighted the harsh punishment received by values ​​related to vaccines against Covid-19.

At the moment the continental squares comply, and this Tuesday they open with increases. The Ibex 35 Selective Spanish opens today with a sum of 0.68% in the 8,820 points, the DAX German increased by 0.31% to 16,070.14 points, the FTSE 100 London (closed yesterday) rebounded 1.20% to 7,473, the CAC 40 increases 0.68% in the 7,265.99 and the Euro Stoxx 50 wins 0.45% on the 4,351.15.

While waiting for the evolution of omicron and with the ghost of inflation always present, the debate is served between those who only see a light in equities and others who only expect curves after the fruits of 2020 and 2021. Anywhere In this case, the main conclusion of what happened yesterday in the western equity and fixed income markets is that, although the cases of Covid-19 continue to rise strongly in most European countries and in the United States, driven by the highly contagious Omicron variant, investors are confident that, given the mildness of the symptoms that it generates, this new wave of the pandemic will not cause major economic or business losses. “What’s more, we understand that many investors are already looking at“ more in the medium term ”, considering the possibility that the pandemic will become an endemic in a matter of months,” they point out from Link Securities.

Macro data

The main macro data to review is already known is that the Germany retail sales figure in November it rose 0.6% in real terms compared to the previous month, according to data from the Federal Statistical Office published on Tuesday. The October data was revised downward, from -0.3% to -0.5%. A Reuters poll of analysts had expected the figure to fall 0.5% in November. In year-on-year terms, retail trade sales fell 2.9%, the same variation as that experienced in October. The Reuters poll pointed to the figure falling 4.9% year-on-year in November.

The Euribor it fell to -0.502% in December and was close to historical lows. This level represents a notable decrease compared to the -0.487% registered in November. The index falls below the -0.500% barrier, after several months in which it has been oscillating between -0.490% and -0.480%, between March and November.

Eurozone Manufacturing PMI (Dec): 58.0 current vs 58.0 forecast and vs 58.4 previous.

Manufacturing PMI of different European countries (Dec). Germany Manufacturing PMI: 57.4 current vs 57.9 forecast and 57.4 previous. France Manufacturing PMI: 55.6 current vs 54.9 forecast and vs 55.9 previous. Italy Manufacturing PMI: 62.0 current vs 61.5 forecast and vs 62.8 previous. Swiss Manufacturing PMI: 62.7 current vs 61.3 forecast and vs 62.5 previous. Norwegian Manufacturing PMI: 58 current vs 63.7 previous.

Other markets

This morning at asian bags the Nikkei in Tokyo rises 1.77% to 29,301.79 points, on the other hand, we see falls in the Chinese stock markets: the Shanghai composite drops 0.20% at 3,632.33 points, the SZSE Component yields a 0.46% and the Hang Seng in Hong Kong fell 0.19% at 23,234.00 points. Seoul’s Kospi advanced 0.02%.

In this market, the Asian one, it should be noted that the activity of its factories It grew in December as companies took it easy on the rise in global cases of the new omicron variant of the coronavirus, although persistent supply constraints and rising input costs clouded prospects for some economies.

In China, the manufacturing industry advanced in December at its fastest pace since June, driven by the production growth, according to the purchasing manager index (PMI) published today by the private newspaper Caixin. In the last month of 2021, the indicator reached 50.9 points, a whole number more than in the previous month (49.9).

In Wall Street New records were experienced yesterday in the Dow Jones and the S&P 500 to start the year. Specifically, the DOW JONES Ind Average rose 0.68% to 36,585.06 points, the S&P 500 stood at 4,796.56 with an advance of 0.64% and the NASDAQ 100 rose 1.11% to the 16,501.77 units. This Tuesday, lThe futures of the main American indices continue to rise and show increases of between 0.10 and 0.17%.

Oil prices move slightly lower before the meeting of OPEC and Russia. Specifically, oil futures Brent are trading 0.38% down at $ 78.67 a barrel, while West Texas is down 0.39% at $ 75.79.

Regarding the OPEC + meeting, all the sources consulted by Bloomberg, FT and other media suggest that OPEC will continue with its roadmap and will make it official this Tuesday the increase of 400,000 barrels of production that will be put into circulation from March.

In the cryptocurrency market, Bitcoin continues to lose ground and today falls 1.42% to $ 46,392.1.

At by EUR / USD, the euro is trading flat at 1.1288 greenbacks.

Agenda of the day

Key day for oil, with the OPEC meeting in which it will decide if it is necessary to make any adjustment in the pumping of crude in the face of the impact of omicron on the economy.

In Spain: registered unemployment (December), affiliation (December), tourist spending and tourist movements at borders (November) and the Council of Ministers.

In Germany: retail sales for November (already known) and employment and unemployment rate (December)

In France: CPI (December)

UK: Manufacturing PMI (December), Mortgages and Consumer Loans (November)

In the US: meeting of OPEC, ISM manufacturing (December), and JOLTS survey of job offers (November).

Leave a Reply

Your email address will not be published.