2023-05-05 20:50:00
The Chilean stock market and the technological Nasdaq reached their best level in almost eight months this Friday After shares of America’s most troubled regional banks found a foothold following their steep losing streak, Apple’s favorable results gave a boost to risk appetite and traders took kindly to some solid US employment data. In the case of Chile, investors closed their last operations before the election of the Constitutional Council.
The Nasdaq Composite jumped 2.25% to its highest level since September 12, 2022while the S&P 500 climbed 1.85% and the Dow Jones grew 1.65%ending a day of progressive expansion that neutralized the weekly performance of the US stock market. Apple (4,69%) stood out by benefiting from quarterly profits and revenues that beat analyst forecasts.
Regional US banks took off today following a week of massive sell-offs, boosting investor confidence across the board. The rebound was led by PacWest Bancorp (81,70%), Western Alliance Bancorp (49,23%), Zions Bancorp (19,22%) y Comerica (16,76%).
At the close of the European stock markets, the regional Euro Stoxx 50 rose 1.25% and London’s FTSE 100 rose 0.98%. On the Asian side, Hong Kong’s Hang Seng rose 0.50% and mainland China’s CSI 300 fell 0.33%.while the Tokyo Stock Exchange remained closed.
Chilean stock market
In the Santiago Stock Exchange, the S&P IPSA expanded 1.93% to 5,480.42 points – its highest level since September 15-, with 24 of its 30 stocks posting gains, which were led by White Gold (6.04%) and SQM-B (5.27%). On a weekly basis, the Chilean selective increased 1.31%.
The actions of CAP (3,53%) y CMPC (3.47%) They were also among the highest rises in the IPSA following beating Bloomberg’s consensus estimates in key figures from their quarterly reports, all this despite the fact that CAP profit plummeted 99.0% year-on-year y that of CMPC fell 9.6% in the same comparison.
“We consider the results obtained by CMPC during this quarter to be positive and we reiterate our forecasts of a gradual reduction in the international price of pulp towards 2023,” said Bci Corredor de Bolsa, who reiterated an estimated target price of $1,800 for the company’s shares. company in 2023.
“CAP has made several adjustments in its steel processing business, refocusing on more profitable businesses, which should provide some kind of improvement as inventories normalize in the future,” said BICE Inversiones, which reaffirmed its target price of $9,094 and a hold recommendation.
The operators thus prepared themselves to receive the election of constitutional councilors that will take place this Sunday, where those in charge of drafting and proposing a new Magna Carta will be defined through mandatory voting under the tutelage of a Committee of Experts.
JPMorgan analysts they pointed out on Tuesday through a note who hope to see a Constitutional Council “more similar in its composition to the Lower and Upper Houseswhich are quite balanced”, and maintained their recommendation to overweight the shares of SQM, Falabella, Cencosud, CMPC, CCU, CAP, Itaú, Parque Arauco, Enel Chile and Mallplaza.
Other Latin American stock markets also registered two advances in the day: the Brazilian Ibovespa jumped 2.91%, the Peruvian S&P/BVL Peru General grew 2.48% and the Argentine Merval increased 5.46%.
BTG Pactual fund puts road network concessions in Chile and trains in Bolivia up for sale
support for banks
“US stocks extended their gains following the US non-farm payrolls report showed the labor market remains resilient. Stocks got off to a good start following strong results from Apple and a rebound from regional banks following receiving a good upgrade of JPMorgan and that some banks and brokerages continued to show that deposits are stabilizing,” Oanda senior market analyst Edward Moya wrote.
According to the US Department of Labor, in the month of April, 253 thousand payrolls were created, the unemployment rate fell to 3.4% and average salaries accelerated to 4.4% per year.
“Wall Street rose on good jobs data as traders digest this week’s comments from the Federal Reserve and the continuing saga of worrisome news from the regional banking sector. Today is a risk-taking day for indices, as even though the promise of interest rate cuts has waned,” said StoneX financial writer Paul Walton. He treasury two years later, it jumped 12.8 basis points (bp).
The week was marked by the Fed monetary policy decision -which on Wednesday raised the key rate by 25 bp and opened the door to an eventual pause-, as well as the refusal of its president, Jerome Powell, to lower the rate in 2023 if inflation continues too high.
The next day, the European Central Bank announced a rate hike also of 25 bp, noting that “inflation has been too high for too long.” Its president, Christine Lagarde, was willing to make further adjustments in the future.
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