A week on the market: Z for the markets did not start

Historically, the worst MSc for stock indices in the world this time did not owe anything. After several weeks of growth, these stocks around the world came under strong selling pressure.

The sale of the stock was particularly pronounced in the world, when the value of the S & P500 index fell by 2.21% in the USA alone. This time, the sale was not as fundamental as the psychological factors. After an indefinite seven-day growth, the space for their further growth darkly disappeared. Because what doesn’t go up, you have to go down, the correction was just a matter of time.

Its market bag was relatively short and in the second half of the week the market situation began to stabilize again. Among the world’s largest economies, according to the upcoming data, which are not the reason for the sale of the event.

Only the United States has released the results of the Manufacturing and Services Sector Activity Index (ISM) in recent days, which has again been able to exceed analysts’ estimates. While the manufacturing sector, largely thanks to the company, has begun to expand again, contraction in services is still dwindling and is the lowest since last year.

In July and August, statistics still have a very positive effect, especially the effect of rotational and other governmental stimuli, which in the US and Europe are just beginning to fully expand. August’s car sales statistics tell us a great deal of impetus for the American automotive industry. These rose to 1.26 million new cars, which is 26% more than in the previous month and thus 100% nrst compared to the arrest this year.

He gave a positive addition to the US housing market during the week. The number of negotiated but not yet concluded contracts for the purchase of a house increased by another 3.2% in July, which was a double factor in the consensus of the market and its six-month growth in a row.

Unsubstituted in the USA is bl 10 percent

The main thing he brought this week was the bag, and on the afternoon he published data from the American labor market, which offered quite contradictory results. While the unemployment rate rose to 9.7% in August, by two-tenths the second consensus, the total number of jobs in the non-agricultural sectors (NFP) was only 216,000 jobs. This was the lowest drop in the last twelve months.

In Europe, this time the data from the German labor market and the fourth European Central Bank received a lot of attention. The unemployment rate in Germany remains stable at 8.3% in August, when the number of unemployed persons even decreased by 1 thousand.

Germany is one of the countries that is very much in favor of the ongoing fiscal expansion, which has begun to increase foreign demand again. The first, together with the domestic government, was the main engine of his surprising growth in the second quarter. The loose monetary policy of the European Central Bank will also play a role, making it clear this week that it has not yet changed its position in full.

So far, rates have remained unchanged in the euro area after a quarter, and as Jean-Claude Trichet, the bank said at a press conference, the ECB remains very cautious about further uncertain developments.

The dollar strengthens against the euro

Only a few signs of this week signed the special currency of the euro and the dollar. Although the dollar managed to strengthen against the euro for the second week in a row, its gains were limited. In the afternoon, it sold against the euro at 1.4230 EUR / USD and was only 0.79% stronger. In the overall picture of the store from previous weeks, the bag has changed little. The dollar has kept its price in the range of two cents from 1.42 EUR / USD, where it has been moving since mid-July.

On the contrary, the Czech Republic came under selling pressure after a long time. With the arrest of the week, it fell to both the dollar and the euro. This was largely due to sales on the stock markets and the growth of risk aversion among traders.

The whole Central European region is still a risky destination for investment, so it is no coincidence that even at a time when the koruna weakened, the value of stock indices in Prague, Varava and Budapest fell by more than 4%. On a weekly basis, the bag of crowns also issued to other Central European currencies, thanks to the gradual calming of nervousness on the stock markets. In pesto, the koruna ends the week weak, when it sold against the euro in the afternoon for 25.52 crowns and the dollar for 17.95 crowns.

The price of gold is steep

The sale of the event and the increase in nervousness among traders left a clear reflection on the commodity markets. After several weeks of stagnation, the price of gold rose sharply, approaching to reach the dollar from the thousand dollar mark on Thursday. Gold, as a safe deposit, managed to get the most out of the negative development in the markets, while other commodities came under selling pressure.

Only the price of oil (brent) fell by $ 6 to $ 66.50 per barrel. The price of natural gas continued in the open air. In addition, they sent down the hardened results of the US stock, which grew by 65 billion cubic feet, and more than five times it is covered by the total volume of stocks for the same period last year. Therefore, the price of natural gas ended last week by less than 20% and to 2.47 USD / million Btu.

So the coming week will bring some very interesting fundamentals that have the potential to know the development of the financial markets. From the USA, it will be the results of the trade balance, the fall of consumer sentiment. Europe publishes German new orders, which tells more about how strong domestic and foreign demand is. The results of the production industries of some euro area member states, the production industries of Britain will be made public, and in Britain the rates will be decided by the Bank of England.

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