We started the first week of the second half of 2017. It will be a short week as there will only be 3 full days of Trading, Monday the market closes 3 hours before (1pm New york) and Tuesday will be closed due to the 4 of July.
The markets closed the second quarter of the year maintaining their upward trend, however below the previous highs, particularly for the most relevant technological actions, where you can see a certain tiredness of the bulls.
Raw materials, including those related to the steel industry, confirmed the breakdown of the bearish trend and approached its maximum values of 6 weeks.
On the other hand, the energy sector had an important rebound towards the end of the last week after touching minimums of several previous months. Sentiment in general points to a significant rise in oil prices for the coming weeks, fueled by fears of declining investment in the sector, weak confidence in supplies from some countries such as Libya, Nigeria, Venezuela and tensions Which are maintained in the Arabian Gulf. However, opinion still remains divided as others believe that low prices may be maintained for an extended period of time.
Another sector that benefited was the financial sector, with CitiBank leading it clearly. Several stocks in this sector rebounded during the past week.
As for this first week of the second half of the year, the futures point to the rise, a fact that has been repeated during the past weeks, opening with a very positive tone and falling after opening to the lows of the day without being able to recover the initial highs . The focus of the investors will be on the comments issued by the FOMC, Federal Reserve, and Labor Day report Friday. Any adverse comments related to this economic calendar could motivate a market crash as many investors doubtless believe that the stock market is close to a correction. We will be very attentive to adjust our portfolio and issue new recommendations.