Juliana Calil
05/05/2021
Highlights
First week of May 2021 with the release of several macroeconomic data affecting the mood of theinvestors. The recovery of the European bloc in 2021 appears to be happening faster than estimated, despite thedouble-dip recession observed in the first quarter and consumer prices being at the highest level of the last twoyears old. In the US, encouraging data showed that US private companies created 742,000 new jobs in April2021, although the country’s service sector grew less than expected in April, mainly due to restrictionssupply of raw materials
DXY is being traded at the level of 91.3 thousand points. The USDJPY is oscillating close to $ 109.2. The USDCHF of $ 0.9130.Gold is trading at $ 1,787 an ounce, and silver at $ 26.5 an ounce
The main facts observed by investors at the moment are:
COVID-19
The US government must support a proposal to overturn intellectual property protections with respect tovaccine against COVID-19 in an effort to increase access to these vaccines as the gap betweenrich and poor nations increases. This will not be an easy battle, given the complexity of the issue and the fact thatthat the WTO can only make decisions based on consensus among its member states
Canada is the first country to authorize the vaccination of adolescents against COVID-19. The Pfizer / BioNTech vaccinewas considered “safe and effective” for the youngest age group. The US is considering taking actionsimilar already in the coming days
MONETARY POLICY
The comments of the US Treasury Secretary, Janet Yellen, moved the market today.First, she said that an overheating of the economy could justify higher interest rates. Then minimizedher statement, saying that she does not expect the Fed to tighten monetary policy because inflation, from her perspective, is nota problem
MACROECONOMY
The IHS Markit US Services PMI showed that the US service sector achieved the fastest pace in Aprilaccentuated monthly expansion since the beginning of data collection, at the end of 2009. The volume of newbusiness grew supported by an increase in exports, and the pace of job creation was the fastestsince last November. On the price front, input costs advanced at an unprecedented rate,due to increases in supplier prices and higher transportation fees; while the inflation rateof charges accelerated for the fourth consecutive month and was the most accentuated in the entire series. The expectations ofbusiness remained optimistic in April
April IHS Markit US Composite PMI posted the sharpest increase in private sector productionsince the beginning of the collection of these data, in October 2009. The growth was registered both in theas in services. Businesses have indicated a sharp increase in employment amid an accumulation ofaccentuated of work delays. In relation to prices, private sector companies registered increasesunprecedented impact on input costs and production charges. Meanwhile, business confidencemoderated slightly, but remained historically high, hampered by concerns aboutsupply chain disruptions and potential strain on future operational capacity.
In Europe, the April IHS Markit Eurozone Composite PMI presented the fastest rate of increase inprivate sector activity since last July, supported by a record expansion of industrial production anda recovery in service sector activity. The growth in the volume of new orders across theeurozone was the strongest in over two and a half years and the volume of orders in the portfolio had the highestmonthly increase in 39 months, while the pace of job creation was the fastest in two years. At theprice front, input cost inflation reached the highest value of this decade, while average pricescharged for goods and services increased at the fastest rate since February 2018. Looking at theIn the future, business confidence reached a record high.
The April IHS Markit Eurozone Services PMI signals the first expansion of the service sector in theEuro since August last year. Spain recorded a sharp increase, marginal growth wasobserved in France, while Germany and Italy showed contractions. Overall, new ordersfell for the ninth consecutive month, with new export business falling for the 32nd consecutive month.Looking ahead, business expectations have reached their highest level since May 2017.
Weekly mortgage applications in the US decreased by 0.9% in the week ended April 30, 2021.new home mortgage orders fell 2.5%, refinancing increased 0.1%. The average interest ratefor 30-year mortgages it rose to 3.18%
US private companies created 742,000 new jobs in April 2021, below expectations of theof an increase of 800 thousand, but increasing the optimism that the recovery of the market ofwork is consolidating. The service provision sector generated 636 thousand jobs, led by leisure andhospitality, commerce, transport and utilities, professional and business and education and health. The sectormanufacturing generated 106 thousand jobs, driven by industry and civil construction.
SHARES
European equity markets operated higher today, as the first signs of economic recoveryof the bloc and the encouraging results presented by the companies in the first quarter, generated more demand foractions linked to value, and maintained the strength of actions related to technology. German logistics company DeutschePost increased its operating profit forecast for 2021, while Danish shipping company Maersksaid it expected solid performance in the first quarter to continue for the rest of the year. Stellantis reported revenuebetter than expected, and the fashion house Hugo Boss saw first quarter sales almost double itin mainland China. In the UK, mining companies, including Anglo America, BHP Group, Rio Tinto andGlencore were among the best performers, supported by higher commodity pricese.
Source:http://wintrademarkets.com
