In a week marked by the Jackson Hole meeting, the market did not succumb to the panic that is generally associated with the arrival of tapering . In fact, the long-awaited message from Jerome Powell on the last day, which made it clear that the idea of initiating the withdrawal of stimulus this year does not imply an acceleration of the rate hike, was well received by investors. Thus, the weekly calculation showed a positive evolution at a general level. European indices ended the week smoothly, while Wall Street maintained its bullish strength.
Although the Ibex 35 was the least bullish market on the Old Continent of the week, with a slight rise of 0.1%, it managed to stay firmly above 8,900 points . Its European counterpart, on the other hand, became the most bullish index in this period, advancing 1.1% to 4,190.98 points, keeping the temporary ceiling formed last week in force.
Carlos Almarza, Ecotrader advisor, points out that the risks of seeing a broader consolidation or correction remain latent . “We continue to expect falls that could be directed at least towards 4,070 / 4,030 points, the scope of which would most likely provoke buyer interest and from where we would already begin to consider taking new positions,” says the expert, who recommends waiting patiently.
Looking at the rest of the Continent, the German Dax, which advanced 0.3%, still runs the risk of seeing drops at least to 15,540 / 15,420 points . For its part, the French Cac ended up rising 0.8% weekly, the Italian Ftse Mib by 0.3% and the English Ftse 100 by 0.9%. On the other side of the Atlantic, with mid-session data, both the S&P 500, which rose 1.4%, and the Nasdaq, which rose 2.7%, were in the area of all-time highs . As for the Dow Jones, the rise was the most moderate, 0.9%.
The week of the banks
After the statements of Luis de Guindos, current vice president of the European Central Bank (ECB) , in which he mentioned a future and progressive withdrawal of purchases in Europe, within the emergency program by the Covid known as PEPP, European investors launched to buy financial shares. In this way, four of the Ibex banks were among the most bullish values of the selective in the last five days.
The best was Sabadell , the third national company that did the best in the week, scoring 5.2%. Bankinter rose 4.6%, CaixaBank 3.1% and Santander 2.9%.
However, the first two on the podium, due to their positive evolution in this period, were Meliá and Repsol . The hotelier found strength when the FDA authorization of the Pfizer-BioNTech vaccine to combat Covid was known and it was done with a weekly boost of 6.7%. Repsol, for its part, advanced 5.8%. In the opposite case, the most bearish companies were Solaria , which lost 5.1%, Endesa , which lost 4.6%, and Grifols, which did 3.8%.
The emergence of raw materials
Commodities and, above all, oil, showed no fear of the Jackson Hole meeting and the announcement of the date for the start of the stimulus cut. In fact, the barrel of Brent registered its best week since June 2020 , with a rebound of more than 11%, after three consecutive weeks in the red . Thus, he recovered the $ 72.41 lost the first week of August.
The price of gold, for its part, had its most bullish week since May, with a rise of 1.5% that took it above 1,808 per ounce .
Debt and euro
Although the intervention of Jerome Powell managed to reassure investors, the sales ended up prevailing in the bond market in Europe and the United States in the week. Thus, the US T-Note rose to 1.315% . The yield of the German Bund jumped to -0.481% and the interest of the Spanish 10-year bond to 0.294% .
As for the euro, in total it finished the week with a rise of 0.8% compared to the greenback , an increase with which it almost managed to erase the losses of last week. Finally, the euro zone currency ended very close to around 1.18 dollars .
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