Tuesday , April 20 2021

The S&P 500 sets a new record as IPSA falls, driven by retail inventories

After a long weekend, the Santiago Stock Exchange closed Monday with a 0.29% drop, placing the index at 4871 points. The setbacks of Mall Plaza, Ripley and Parque Arauco put pressure on new restrictive measures.

The holiday ended and investor optimism returned. After the U.S. government announced on Friday Creation of 916 thousand jobs and reduction of the unemployment rate to 6 percent, the stock market hoped that the economic recovery could take place earlier than expected. Especially with Joe Biden’s new $ 2 trillion infrastructure plan.

Moreover, in the midst of a panorama that estimates that the U.S. Federal Reserve will not raise interest rates in the short term, the words of Treasury Secretary Janet Yellen will also motivate investors by proposing a global minimum tax. companies that it will ensure that the world economy thrives on a more level playing field.

In this way, Wall Street closed all indexes in green. The Dow Jones rose 1.13% to 33,527 points, while the S&P 500 rose 1.44%, bringing the index to a new record of 4,077 points.

Encouraged by the decline in ten-year government bond yields The Nasdaq closed trading with an advance of 1.67% to 13,705 points.

“It’s hard to look around and find many reasons to be negative. We had a big payroll in March, the Treasury has remained fairly unchanged. It’s one of those situations where good news is really good news.” Baird investment strategy analyst Ross Mayfield told Bloomberg.

On the contrary, after several days of rising, oil sank more than 4 percent after Thursday, the Organization of the Petroleum Exporting Countries and its Allies (OPEC +) decided to expand crude oil production from May to July, boosting Iran’s output growth. and the threat of a new Covid-19 wave in Europe.

As Bart Melek, Commodity Strategy Manager at TD Securities, explained to Bloomberg, this combined news “may well mean that the market perceives the imbalance to be larger than before.” In addition, “significantly lower demand from Europe could weaken the short-term outlook for consumption”.

Despite this, Brent crude managed to recover just before a near-rise of 0.06%, raising the barrel to US $ 62.28, while the West Texas Index (WTI) rose 0.32% to $ 58.98.

Drops in Chile

After a long weekend, the situation has become more challenging on the Santiago Stock Exchange, as most of the shares are resale and shopping malls will fall due to new sanitation restrictions that came into effect today, Monday.

Closing borders and changing what has been considered an essential product has forced most companies to close some of their corridors or, in the case of smaller facilities, to close their businesses altogether.

In addition, the health situation remains an obstacle to economic recovery, with Health Minister Enrique Paris reporting 5,807 new cases of Covid-19 in the last 24 hours.

Thus, S&P IPSA ended the day with a drop of 0.29%, placing the index at 4871 points, pull Mall Plaza (-2.82%), Ripley (-2.68%) and Arauco Park (-2.43%). Similarly, Latam fell 2.43% after suspending much of its international operations due to border closures.

On the contrary, the companies that had growth in the session were CAP (3.02%), CCU (1.14%) and AES Gener (0.55%).

Meanwhile, copper continues to rise 3.51% on the London Metal Exchange, which invested red metal at $ 4.13 a kilo. Despite this, the Chilean dollar rose $ 3.3 from the previous close to $ 720.5.

According to the Head of Studies trading The rise of the Capitarian, Ricardo Bustamante, currency “is explained by the political uncertainty at the local level, especially with the future of the constitutional elections and the next government support following the pandemic.”

“This situation should not cause a change in the trend, as downward pressure on the dollar should take it back to a key area close to $ 700 despite brief instability,” he adds.

Japanese Stock Exchange

While most of the Asian and European stock exchanges are still closed at the Qingming Festival and Easter Monday, in Japan, the action is taking more force due to U.S. employment performance.

The Nikkei 225 rose 0.79%, once again more than 30,000 points for the first time in more than two weeks, and the Topix index rose 0.6% to 1983 points.

“U.S. bond yields rose shortly after the release of employment data, which will also increase shares of Japanese banks,” Shoichi Arisawa, CEO of IwaiCosmo Securities ’investment research division, told Reuters.

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