Feeling of market, by Alberto Carbonell

After the decision of Google of dropping its licences to Huawei, it will be necessary to be attentive to other companies' next steps of the sector as a Qualcomm, Broadcom, Micron Technology or Digital Western. This context yesterday produced generalised losses in the share incomes both in Europe and in the United States. The companies that were seen incumbents in the meeting of yesterday went net teams manufacturers, that they would be able to occupy the gap that would leave the veto the Chinese Huawei, as are Ericsson and Nokia.

In Europe the airlines aggravated the generalised bad behaviour of the indexes when registering recessions after the Results Presentation of Ryanair, that it did not achieve reach predictions of the market. When it comes to the market of debt, the sales predominated throughout yesterday's session doing that the bund recovered in 1.6 basis points until the - 0.091% of return. Furthermore, the American bond to 10 years recovered until 2.41%. For today's meeting it will be necessary to follow attentive to the evolution of commercial tensions since its outcome can condition the worldwide growth rates.

Today at 11.00am. the OECD publishes its growth predictions that surely they will have very in account the impact of the smaller worldwide trade. It is expected that new predictions lower the figures of 3.3% for 2019 and 3.4% for 2020 that they are in force currently. At the level of economic references, the most notable thing of the session will be the publication in Europe of the consumer confidence. In the United States have the publication of second-hand homes. At the level of appearances in the United States will talk Evans and Rosengren of the Fed (4.45pm and 6.00pm) and in Europe emphasise of Of Guindos and Visco (11.00am and 12.30pm, respectively).

Yesterday's market

US

It has softened temporarily the imposed commercial constraints last week to Huawei. Nike and Adidas have requested to Trump that it reconsiders the fares owing to the fact that they would have a catastrophic effect “” for the consumer.

GE

The prices to the production grew an annualised 2.5% in April (2.4% esp).

Schedule of events

Foreign exchange market comment

Rafael Cortés

This week still be attentive to the holders that they go appearing on the commercial war, possibility of new stimuli by China and also some clue on when will take place the following round of conversations. Although seems that the thing is cooler, there is still a significant risk for the markets, since both parts' postures seems that they are enough far removed.

This week begin the European elections, the EUR/USD constant crossing in a narrow range it will be necessary to be attentive to the Polls as well as to the details of PMI to see if the euro is able to break levels, the area of the 1.11 is a significant support.

Last week was very hard for the pound that broke very significant support (close our long position GBP/USD to 1.2850) the negotiations between conservatives and members of the Labour Party are broken, even so Theresa May has the intention of taking to the parliament for the fourth time the exit agreement with some small touch-ups, the possibilities of that it achieves the support of the parliament are scant which added to the bad result for the conservatives that they anticipate the surveys in the European elections would do unavoidable May's renunciation.

Europe:

EZ 4.00pm consumer confidence (May.).

The USA:

US 4.00pm existing sale of houses (Apr.).

Market summary