Victor Camargo
04-14-2021
On Wednesday, the euro returned above the 1.19 region, testing its highest levelsince March 18, after ECB vice president Luis de Guindos told themonetary affairs committee of the European Parliament that the central bank will act onany “damaging” increase in borrowing costs until the pandemic is over. Opolicymaker also said that economic activity in general should accelerate sharply in thesecond semester of this year, thanks to vaccinations, the flexibility ofrestriction and support for monetary and fiscal policy in the Eurozone and the rest of the world.At the same time, uncertainty remains high and the recovery must be fragile, with theGDP only reaching its pre-crisis level in the second quarter of 2022.
In contrast, the DXY index was slightly down, trading at around 91.7,with treasury yields well below the recent highs and with the recent numbers ofinflation that alleviated concerns about the Fed’s impending decline. Demand fordollar also decreased due to the slowdown in vaccinations after the FDAasked Johnson & Johnson vaccines to stop being administered
The Dow Jones index rebounded to renew maximum recore today, with the shares ofGoldman Sachs showing excellent performance after the bank recorded profits andrecord net revenues in the first quarter. JPMorgan Chase and Wells Fargoalso exceeded estimates. The S&P 500 was close to record highs,while Nasdaq remained little changed earlier in the session
In Europe, the DAX 30 closed little changed for the sixth consecutive session, very closerecord high, with recent data showing that the industrial production of theEurozone had its biggest drop in February in 10 months after an expansion inJanuary. On the corporate side, results from LVMH and Christian Dior surprisedpositively.
Industrial production in the Eurozone fell by 1.0% in February compared to the monthprevious year, after an increase of 0.8% in January; expectations were for a drop in1.1%. It was the biggest decline in industrial activity since the record contraction in April, asince many countries in Europe remained under strict restriction measures byaccount of the coronavirus. Production fell for all categories: capital goods (-1.9% vs1.2% o); energy (-1.2% vs 0.3%); durable consumer goods (-1.1% vs 0.9%); assetsintermediaries (-0.7% vs 0.0%); and non-durable consumer goods (-0.1% vs 0.5%). InOn an annual basis, industrial production fell 1.6% in February, with forecastswere a decline of 0.9%.
Source: WinTrade Markets https://wintrademarkets.com/
