Analysis Of The Closing Of The Stock Market (Monday, January 13, 2020)
European Stock Exchanges, Waiting For The Presentation Of Results
At the close of the European session, the main global exchanges have shown mixed behavior. While European stock markets have dropped a few tenths, stock exchanges in the United States advance a few tenths. A conditional day, in the beginning, tomorrow of the presentation of results of the companies, that begins with those of the American banks like Citigroup or JP Morgan.
In the European session, red has predominated, with setbacks of up to 5 tenths, the Ibex 35 (-0.31%) and the Italian Footsie (-0.52%) being the most affected indices. The only advance has been registered in the United Kingdom. The Footsie 100 has advanced + 0.39%, despite macro data, in the face of rumors of a possible interest rate cut in the short term. The market consensus places the probability that the Bank of England (BoE) has lowered interest rates by 85% before the May meeting and 100% before the December meeting this year.
In Spain, the Ibex 35 has left -0.39%, stabilizing above the threshold of 9,500 points, up to 9,544 points. Among the main values that have prevented a greater fall are Arcelor Mittal (+ 2.17%), Indra (+ 2.12%) and Naturgy (+ 1.49%).
On the negative side, the market has punished Siemens Gamesa (-2.48%) and MasMóvil (-1.93%). In turn, there has been profit-taking in IAG (-1.93%), after its progress in the last session of + 4.60%, mainly supported by the best forecasts of Ryanair.
In the United States, the stock markets advanced a few tenths to half a session, in an area close to historical highs.
Fixed Rent
Sales have prevailed in the European fixed income market, somewhat more significant in the long part of the curve and the Italian sovereign curve.
At the same time, rumors of a possible interest rate cut in the United Kingdom have encouraged purchases in the English sovereign curve by reducing the yield of its bond to 10 years to + 0.746%, slightly lower than the official BoE interest rate (+0.750 %).
Macro
The attention has been placed in the United Kingdom, a few days after its expected departure from the European Union.
On the one hand, it has been known that the country's GDP has grown by + 0.6% year-on-year, the lowest rate since 2013.
On the other hand, industrial production has remained two tenths below the market estimate when registering an inter annual variation of -1.6%.
Business
JP Morgan has reiterated its advice to overweight Apple with a target price of $ 296 (revaluation potential of -5%)
Credit Suisse has increased Microsoft's target price to $ 188 per share (revaluation potential + 17%)
Raw Materials & Currencies
Brent oil maintained the downtrend after touching $ 70 per barrel last week. It fell by approx -1% underneath $64.5 for each barrel.
Gold followed the same path as oil and fell around -0.5% to $ 1,550 per ounce.
In the foreign exchange market, the focus was on the pound sterling, which depreciated against other currencies amid rumors of a possible cut in official interest rates. It fell below the level of 1.30 dollars per pound and 1.17 euros per pound.