The reconstruction of strategies leads to a chain of movement in the stock markets, forcing the intervention of other types of investors. This quarter, the rebuilding of some derivative strategies ended with the influx of several stock purchase orders into the market.
In the United States, homes under construction during the month of November increased by 3.30% to 1,297 million, compared to the expected 1,250 million. On the other hand, the number of building permits decreased by 1.40% to 1,298 million. Economists estimated 1,270 million licenses.
Yesterday the session was marked by the realization of some profit takinhg. This move had its epicenter in Apple shares. Nomura's recommendation to reduce in Apple served as a motivation for a number of investors to realize some profit takinhg, not only in this stock but also in the technology sector as a whole.
The approval of the tax reform is a victory of the Trump Administration that managed to approve it at times that can still be considered short, overcoming the objections of several members of the Republican Party itself .
Friday session was poor in news, which, along with the current court, contributed to a decrease in volume. Roche announced that it will acquire the American Ignyta (specialized in cancer treatment) for 1700 M.USD. Roche shares fell 0.41%. At the sector level, the banking sector was penalized by the weakness of the Spanish banks. On the positive side, the media sector stood out.
The retail sector stood out positively after Mastercard reported that US consumers spent more than 800,000 M.USD on holiday purchases, a number considered a record. This behavior was driven mainly by the increase in consumer confidence, the growth in employment and the fact that rebates in stores started earlier.
Today’s session is part of the period that corresponds to the so-called Santa Claus Rally. This period includes the last five sessions of the year and the first two of the new year. The Dow Jones and S&P500 indices completed at the end of last week five consecutive weeks of gains as a result of the tax reform announced by Donald Trump that reduces corporate taxation from 35% to 21%.
Copper hit highest yesterday for the last three and a half years. Sustaining the rise in this raw material are, on a more structural level, positive prospects for the world economy. In fact, the current macroeconomic environment has some unique characteristics. The current phase is marked by a unison of the major economic regions, something that was not observed more than two decades ago. Thus, this whole cycle is guided by a high correlation between the main economies, with the growth of one to stimulate and reinforce the expansion of the others.
European markets ended the last session of 2017 in different directions, with investors looking at the outlook for the coming year. 2017 was marked by an appreciation of the European stock markets, albeit smaller than the US, mainly due to the appreciation of the Euro which is a disadvantage for the region's exports. The technology sector has appreciated by around 20%, making it one of the best performers in Europe on an annual basis. The producers of raw materials were also highlighted by the positive, driven mainly by the rise in metal prices at the end of the year. In London and Frankfurt, markets closed earlier. The FTSE index appreciated 0.85%, reaching a new high, led by companies in the mining sector. Infrastructure firm Balfour Beatty rose 1.43% after reporting that it had sold an additional stake in Connect Plus. On the other hand, the German market closed with a slight loss, reason why in annual terms the valuation of the DAX index was of 12.60%. In Paris, Airbus shares have been under pressure, despite reports of an order for 430 A320neo planes by private equity firm Indigo Partners.
Today begins the earnings season, which will be one of the central themes of this week.