The main Wall Street indices are trading around their historical highs, despite the fact that at the start of the week they found it difficult to renew them. One of the benchmark indexes, the S&P 500, accumulates six weeks uploaded in a bullish streak that has led the index to set and break new records week after week in this rise. In 2024, the reference of the 500 most important companies in the United States is trading at levels never seen beforearound 5,800 points, which represents an increase of more than 22% in the year, from the 4,769 points at which this year began. course. Despite the fact that at the European close it fell 0.6%, the American selective par excellence has just marked another milestone, since if you look at its price in euros, its rise exceeds that in the local currency of Wall Street. And it is that with the S&P 500 already gains 25% in euros.
Its European US equity investors have been especially favored by the last turn that the dollar has taken against the euro since the end of September. Days before, the long-awaited wish of the markets was finally fulfilled: the United States Federal Reserve (Fed) made the first rate cut jumbo in the year, of a single stroke lowered the price of money by 0.50 points. However, the tone used by the members of the Fed announcing that rates will remain high for a while once again encouraged the dollar. From there, the eurodollar exchange rate has progressively fallen to 1.08 dollars per euro, levels it has not had since July.
A change in the currency after the summer
This summer the scenery It was completely opposite.. The European currency strengthened against the American currency in this period, which led the exchange rate to reach its highs of the year: 1,119 dollars per eurolevels not seen since June 2021. All despite the fact that the European Central Bank ahead of the US Federal Reserve at the beginning the interest rate cuts. The European currency reached its maximum peak at the end of August after the falls of Black Monday.
“The tone dovish of the ECB after the past rate cut Thursday, along with solid macro data in the US (retail sales), have allowed the dollar regains ground against the euro“, they explain from the analysis firm Bankinter. In addition, from the banking entity they are positive with the advance of the American currency, and they even expect that “this trend will continue this week with the publication of weak Manufacturing PMIs in Europe and without significant improvements in Consumer Confidence in the Economic Monetary Union(UEM)”. Therefore, they estimate that one euro will remain between 1.08 and 1.088 dollars throughout this week.
Compared to the S&P 500 equity counterpartsthe benchmark index is on an unbeatable path, despite this Monday’s doubts. Not even the technological selective manages to keep up with its pace in the stock market. The Nasdaq 100 is up 20% this year, while another of the classics On Wall Street, the Dow Jones lags behind its peers, rising 14% this year.
On the other side of the Atlantic, the week also started with falls. The French, German and European teams were the most affected on the day. While the Ibex, Despite its 0.7% drop at the beginning of the week, it still rises 17% in the year, which continues to hold the title of the most bullish on the continent in the year.
#conquest #earned #euros
