Weekly Market Review - March 11-15
If the previous week was in red, the one ended on March 15 demonstrated strong bullish tendencies, with most of the markets recovering the losses. The sentiment was driven by the central bank of China, which revealed new stimulus measures. In the UK, the House of Commons voted against Prime Minister Theresa May’s Brexit deal and a no-deal approach. Instead, the parliament favored a delay in the Brexit process. Another vote is expected the next week on March 20.
European Stock Market
The European stock markets ended the week in green amid UK Parliament’s voting. Donald Tusk, President of the European Council, said that he had accepted an eventual 12-month delay to permit the UK to rethink its decision to exit the European Union.
European indexes showed positive results, with French CAC 40 index gaining 3.33% over the week, German DAX 30 rising 1.99%, and English FTSE 100 adding 1.74%. Euro Stoxx index rose 3.12%.
Spanish clothing company Inditex reported a 4% increase in Q4 revenues, up from the 2% growth recorded in the previous quarter, though less than expected. However, dividend pay-out increased to 17% in spite of the modest rise in earnings, up 2%.
German Adidas saw a slowing growth, with revenues falling 5.7% in the fourth quarter of the last year, after declining 1.3% in the previous quarter. The company announced some supply chain problems, especially in North America. The stock price rose 0.85% over the week.
Italian insurance company Generali reported positive figures, with operating profits hitting 4.86 billion euro against the expected 4.82 billion. All segments have been in green, with its solvency ratio increasing to 216%. The stock price rose almost 4% over the week.
US Stock Market
The US market demonstrated a sharp growth to new annual highs after a slow start of the month. Healthcare and tech sectors were the best performers, gaining over 3% for the week. The US-China trade summit was postponed to April.
All of the three main indexes increased – Dow Jones added 1.57%, S&P 500 gained 2.89%, and NASDAQ jumped 3.78%.
Boeing share price declined by 12% over the week because of a plane crash in Ethiopia, which was followed by decisions coming from several countries to give up the 737 Max model.
Despite the fact that WTI oil surged 2.4% at the end of the week to the highest levels since last autumn, oil stocks didn’t react to the news, showing modest growth.
In the commodity market, Brent oil rose about 2% over the week, to $67, while WTI crude oil rose 4.17% to $58. Thus, oil prices rose to the highest levels since November 2018.
Libya’s oil production increased after the Sharara field restarted operations, reaching production levels not seen since 2013.
The OPEC report showed that demand increased over the month by 1.24 million b/d to 99.96 million. Non-OPEC supply growth was revised up thanks to Canadian production.
The gold price slightly increased this week and exceeded the $1,300 level after de bearish trend at the beginning of this month. Central banks continue to expand their reserves with gold, adding 47 tons in January. China and Russia were the most active buyers in February.
The crypto market has been frozen for the whole week until Friday, with Bitcoin showing no direction and trading at around $3,900. However, on Saturday morning, it suddenly jumped 3.36% and currently trading above $4,000. Market participants consider March as the start of an altcoin season, with many tokens and small coins demonstrating bullish rallies and short-term growth.
Anatol has been writing for our news site for a year and is the newest member of our team. While he’s new to us, he’s certainly not new to trading with over 10 years’ experience being a professional financial journalist and working in the markets. Learn more.