- Germany holds general elections this Sunday
- The markets are 'strong' but we will have to see how they react to these catalysts
European stock markets are up 0.8% on average. The Ibex increased its profits (+ 0.66%) and already touches the 10,400 points (10,385 points). Portugal, PSI 20 is up 2% against increases of 7% of BCP bank. All this in a week in which the Federal Reserve (Fed) is pronouncing (on Wednesday) its decisions on monetary policy. Meanwhile, investors will assimilate whatever is being published on what is forecast or not for the important elections in Germany this Sunday (Angela Merkel part as clear favorite). These are undoubtedly the two most important appointments of a week in which summer is shelved to enter fully in the fall.
- 19.542,300
- 1,01%
"We expect the Fed to announce that it will begin to reduce its balance sheet in October," said Danske Bank experts. In general, this is expected to be a transition meeting and that at the end of the year the movement in terms of balance and types will begin. Of course, the chances of the Fed holding the third rate hike of the year are getting smaller.
The Fed will not be the only central bank on the week's agenda. On Thursday, the Bank of Japan meets as well. "The agency is expected to maintain stable monetary policy, possibly with a unanimous vote," Link Securities experts said in its daily report. Also on Monday, the Bank of England Governor will conduct a public intervention, followed by an open conversation with the managing director of the International Monetary Fund (IMF), Christine Lagarde.
US President Donald Trump will address world leaders at the United Nations on Tuesday, which is expected to see tensions with North Korea take center stage. In addition, new details of Trump's fiscal policy are expected in the coming days. It should be added that New Zealand also holds general elections this week, namely on Saturday, 23 September.
In Spain, and from the business point of view, this Monday the investors follow Siemens Gamesa (+ 2.04%). The company has announced a first order of 150 wind turbines in China. The announcement was made after being published that could revert its presence in the Asian giant and at a significantly negative moment for Siemens Gamesa. Last Friday was 4.5% in stock market, one more drop in the sea of successive falls that the company is suffering.
