Bloomberg Line – US actions began the week with losses and interrupted the longest daily rack of the S&P 500 in more than 20 yearsin the midst of contradictory signals on commercial policy and attention focused on the next decision of the Federal Reserve.
See more: Europe’s time: analysts see conditions to invest in European assets
The index closed with a loss of -0.64%while the Nasdaq Composite fell by -0.74% and the Dow Jones Industrial retreated -0.24%. This pause in the impulse that was seen during the past week It reflects the caution of the market to key macroeconomic factors and some fatigue after the strong rebound in recent weeks.
President Donald Trump said the United States I could realize trade agreements with certain countries in the next few daysAlthough he ruled out an immediate dialogue with Chinese President Xi Jinping. So far there have been no indications of an agreement with the Asian giant.
Even so, He was willing to consider flexibility of tariffs against China in the futureAlthough he mentioned the possibility of imposing a 100% tariff on foreign films. Companies like Netflix (NFLX) and Paramount (for) fell during the day.
The bags cut the losses after the activity of the services in the United States will recover in April. The rise helped dissipate the fears of a recession, even when the effects of the commercial war have not yet been perceived.
One of the main speakers of investors this week It is the announcement of the decision of the Federal Open Market Committee (FOMC) of the Federal Reserve planned for Wednesday. Although Trump said he does not plan to dismiss the president of the Fed, Jerome Powell, He publicly reiterated his pressure to reduce interest rates.
Fed decision.One of the main speakers of investors this week is the Fed meeting.(Michael Nagle)
These statements, made from the Air Force One, contribute to uncertainty on the course of monetary policy in a global economic deceleration context.
In addition to the Fed, the focus will also be placed at the Bank of England meeting. Jim Reid, Deutsche Bank analyst, said he enters “In a week in which attention should focus on central banks”in reference to the market turn towards monetary policy.
See more: Apple, Meta, Amazon or Microsoft: What do analysts recommend investing in May?
Uncertainty comes while the seasonal results season ends in the United States, With more than 70% of the companies of the S&P 500 already having published their reports.
“We have trimmed our benefit growth forecast by 2025 of world technology companies from 16% to 12% in an environment of high macroeconomic uncertainty“Said Mark Haefele, Chief Investment Officer of UBS Global Wealth Management.” However, we consider that this set of technological benefits is better than expected, since it highlights the resistant growth profile of world technology “.
oil falls.Oil prices collapsed after the announcement of OPEC+.(Bloomberg/Rich Press)
Petroleum collapse
The price of oil registered a strong fall after the OPEC+ announced an increase of more than 400,000 barrels per day from Junewhich intensified fears about a possible excess global supply in a context of demand weakened by commercial tensions between the United States and China.
Brent came back to 4.6%, approaching minimal levels not seen in almost four years. Saudi Arabia left open the possibility of new increases in production, with the aim of pressing partners such as Kazakhstan and Iraq and recover land in front of the American schist crude.
See more: How much will cocoa, oil, copper and coffee arrive? This calculates the World Bank
This change of strategy represents a break with respect to previous prolonged cuts and reinforces the bearish pressure on a market already affected by macroeconomic uncertainty.
How is the dollar in Latin America?
The MSCI index of emerging market coins reached a historical record, driven by a strong advance of Asian currencies in a context of global dollar setback. At the same time, the shareholding index of emerging markets also rose, supported by distension signs in international commercial tensions.
The turn in the speech of President Trump, by suggesting possible trade agreements with several countries in the next few daysreinforced the perception of a change from the tariff climb to a negotiation phase.
The dollar falls.The currency is weakened globally in the midst of commercial tensions.(Toru Hanai)
In Latin America, the coins began the week with disparate performance. The Chilean weight (USDCLP) led the increases, driven by the rise in copper and the fall of oil.
However, the rest of the currencies showed losses, with red numbers in the Brazilian real (USDBRL), the Argentine weight (USDARS), the Colombian (USDCOP) and the Mexican (USDMXN).
According to the BBVA analysis, Latin American currencies remained solid for much of the previous month And they could continue supported if the expectations of commercial agreements persist.
This story was updated after market closure.
