COVID-19 : investors aware of Germany’s business climate and US GDP

Investors’ attention will continue to focus this week on the evolution of the coronavirus pandemic and on various macroeconomic data that will be released in Europe and North America. The most prominent are the German business climate, inflation in the euro area and the second reading of the United States GDP, without forgetting the evolution of the coronavirus pandemic.

Monday will be published Germany February Business Sentiment Survey prepared by the IFO institute of the country. The consensus of analysts foresees a significant rise of 3.1 points to 93.2 points and a positive evolution of the survey of the current situation and expectations, according to experts from Singular Bank.

A day later, on Tuesday, the final data of the consumer price index of the currency zone in january, whose preliminary data surprised to the upside after standing at 0.9% year-on-year, compared to -0.3% in December. The result put an end to five consecutive months of price declines due to the minor negative effect of energy prices and the strong increase in the prices of services and non-energy industrial goods.

Eurozone inflation rose to 0.9% in January after five negative months

Specifically, the price of energy in January registered a year-on-year decrease of 4.1%, compared to the decrease of 6.9% in December, while fresh food rose 1.9%, three tenths less than the previous month. On the other hand, services became more expensive by 1.4%, after rising 0.7% year-on-year in December, while non-energy industrial goods rose by 1.4%, after falling by 0.5% in December.

Investors will also know the unemployment rate in the United Kingdom in January on Tuesday, while in the United States all eyes will be on the appearance of the Federal Reserve Chairman Jerome Powell before the financial services committee of the United States Congress. In addition, that same day will be published the consumer confidence of February of the Conference Board from the United States.

Another appointment of interest will arrive on Thursday. This is the second reading of the gross domestic product for the fourth quarter of 2020 in the United States, from which a slight upward revision is expected to 4.3% annualized, according to Singular Bank.

Federal Reserve Chairman Jerome Powell appears this week before the financial services committee of the United States Congress

On Thursday several interesting statistics are published, such as the economic climate of the euro zone in February, the GfK Germany Consumer Confidence Index for March, as well as the new orders from the US industry for January and the weekly applications for unemployment benefits in that country.

Joaquín Robles, an analyst at XTB, thinks that this week it will be also conditioned by the evolution of the health crisis and that investors will continue to watch if the number of infections is decreasing and if the vaccination campaign is really beginning to generate a turning point.

Regarding the markets, Robles recalls that the US and German stock indices are at levels very close to all-time highs And it will be very difficult to continue pushing up, without losing sight of the evolution of the US 10-year bond, which has put pressure on investors in recent sessions.

The Ibex 35 strengthens the 8,100 points

The Ibex 35 will start this Monday from 8,151 points after having closed the week with a rise of 1.16%. The lack of catalysts in the financial markets and the mixed price of the Asian stock markets and Wall Street led the selective Spanish to consolidate the level of 8,100 points at the end of the week.

The Ibex 35 will start this Monday from 8,151 points after having closed the week with a rise of 1.16%

Acciona was one of the main protagonists of the week after obtaining a net profit of 380 million euros in 2020, which is 8.1% more than in the previous year despite the coronavirus crisis. In addition, the company announced that it will undertake reforms in its corporate structure after the approval of the IPO of its renewable subsidiary with the aim of giving greater visibility to its different lines of business, reducing costs and strengthening its balance sheet.

Tourism values ​​were also the main protagonists at the end of the week due to the improvement in economic forecasts and after the downward path of the previous days. A) Yes, IAG bounces more than 5%, followed by Amadeus, which rose 4.8%, while Meliá registered increases of more than three percentage points.