MARKET RESEARCH

Mar 17th Mar 21st

SPOTLIGHT
Euro Area Consumer Confidence

Portuguese debt repurchase disappoints

Last week, PSI20 rose 2.06%. Data released by Banco de Portugal showed that the indicator for the annual evolution of economic activity rose 1% last month, leading to stabilization in relation to the growth rate recorded in January. According to the same report, this month, household consumption has improved at the strongest pace since September 2010. Finally, IGCP repurchased just 50 million of Portuguese sovereign debt, down from the expected 500 million, as investors find attractive the risk return ratio offered by the Portuguese Government bonds.

FEP Finance Club; INE; tradingeconomics.com

INDEXES PERFORMANCE
Mar 17
PSI 20 STOXX 50 FTSE 100 DAX CAC 40 NIKKEI 225 HANG SENG
7,450.26 3,049.19 6,568.35 9,180.89 4,271.96 14,277.67 21,473.95

Spain issues debt at record low yields

Mar 21
7,467.65 3,096.49 6,557.17 9,342.94 4,335.28 14,224.23 21,436.70

Mar 18
7,516.38 3,073.75 6,605.28 9,242.55 4,313.26 14,411.27 21,583.50

Mar 19
7,512.99 3,076.36 6,573.13 9,277.05 4,308.06 14,462.52 21,568.69

Mar 20
7,480.58 3,088.90 6,542.44 9,296.12 4,327.91 14,224.23 21,182.16

Wkly Chg
2.06% 3.06% 0.45% 3.16% 2.82% -0.72% -0.48%

FEP Finance Club; Google Finance

CURRENCIES
Mar 17
EUR/USD EUR/CHF EUR/GBP EUR/JPY EUR/YUAN AUD/JPY
1.393 1.217 0.837 141.910 8.604 92.570

Mar 18
1.393 1.216 0.839 141.340 8.626 92.640

Mar 19
1.382 1.219 0.836 141.540 8.565 92.490

Mar 20
1.378 1.217 0.835 141.100 8.581 92.550

Mar 21
1.379 1.218 0.837 141.090 8.588 92.880

Wkly Chg
-0.86% 0.35% 0.11% 0.05% 0.39% 1.51%

FEP Finance Club; Investing.com

REFERENCE RATES
Mar 17 Euribor 1M Euribor 3M Euribor 6M Euribor 12M Eonia 0.232% 0.305% 0.407% 0.576% 0.162% Mar 18 0.234% 0.309% 0.410% 0.582% 0.160% Mar 19 0.237% 0.312% 0.414% 0.585% 0.168% Mar 20 0.238% 0.313% 0.416% 0.591% 0.163% Mar 21 0.239% 0.315% 0.420% 0.593% 0.170%

European stock markets advanced last week, with STOXX50 posting the first weekly gain (+3.06%) in March, as consumer confidence rose in the euro area. According to the European Commission, household confidence in the euro area rose to -9.3 in March, from -12.7 in February. However, Eurostat showed that consumer price inflation in the euro zone rose +0.7%, less than initially estimated last month, underlining concerns over the threat of deflation in the region. The ZEW CER said its index of German economic sentiment tumbled by 9.1 points to 46.6 this month, from Februarys reading of 55.7, dampening optimism over the health of the euro zones largest economy. Besides, Spanish Government saw its borrowing costs decline to the lowest levels on record at a Thursdays auction. Spains Treasury sold 2.671 billion worth of 5-year sovereign bonds at an average yield of 1.991%.

China home-price growth slows down

Asian stocks ended the week rising, with the regional index of shares outside Japan rebounding from the biggest loss since August. Chinese new-home price growth slowed, amid tighter credit to rein in excessive borrowing and individual city measures to curb property prices. Chinas benchmark money-market rate had the biggest weekly jump since December, after the central bank drained funds from the banking system. After a slowdown in industrial-output, China will speed up construction projects to support the economy. Japans trade deficit exceeded estimates in February, underscoring drags on the nations recovery ahead of a sales tax increase in April that will weigh on domestic demand. Finally, the Australian dollar rose against all of its 16 major peers on speculation the countrys growth will defy a slowdown in China.

FEP Finance Club; Banco de Portugal; BPI

BOND YIELDS
Mar 17 Portugal 6M Portugal 5Y Portugal 10Y Spain 10Y France 10Y Italy 10Y Germany 10Y UK 10Y 0.666% 3.477% 4.525% 3.319% 2.139% 3.379% 1.567% 2.684% Mar 18 0.645% 3.349% 4.429% 3.306% 2.126% 3.366% 1.571% 2.680% Mar 19 0.428% 3.321% 4.390% 3.336% 2.158% 3.385% 1.599% 2.697% Mar 20 0.453% 3.330% 4.385% 3.378% 2.190% 3.439% 1.651% 2.766% Mar 21 0.626% 3.203% 4.270% 3.355% 2.162% 3.406% 1.633% 2.748%

FEP Finance Club; Investing.com

Financial Markets | fepfinanceclub@gmail.com|www.facebook.com/FEPFinanceClub

Page 1/2

SPOTLIGHT
Philadelphia Federal Reserve Manufacturing Index

Fed hints sooner-than-expected rate rises

U.S. stocks alternated between rises and falls last week, with the S&P 500 gaining 1.4%. On Wednesday, Fed Chair Janet Yellen suggested interest rate hikes would happen about six months after quantitative easing ends. Economic reports showed that industrial production increased 0.6% in February from the prior month, beating expectations for a 0.1% increase. Moreover, consumer prices rose 0.1% in February. The number of building permits issued last month surged by 7.7%, to a seasonally adjusted 1.018 million. On the other hand, home sales dropped 0.4%, to an annual rate of 4.60 million units, the lowest level since July 2012. Besides, Philadelphia Fed's manufacturing gauge climbed to 9.0 in March, from negative 6.3 in the previous month. Finally, big gains in exports and overseas investment income narrowed the US current account deficit to $81.1 billion in the OctoberDecember quarter, the lowest level in 14 years.

FEP Finance Club; investing.com

INDEXES PERFORMANCE
Mar 17
S&P 500 DJIA NQ 100 S&P Lac 40
1,858.83 16,247.22 3,662.51 3,255.33

Mar 18
1,872.25 16,336.19 3,706.62 3,315.22

Mar 19
1,860.77 16,222.17 3,682.73 3,310.51

Mar 20
1,872.01 16,331.05 3,693.97 3,383.58

Mar 21
1,866.40 16,302.77 3,653.07 3,390.14

Wkly Chg
1.37% 1.48% 0.69% 4.82%

FEP Finance Club; Google Finance

CURRENCIES
Mar 17
USD/JPY USD/YUAN AUD/USD GBP/USD USD/CHF USD/CAD
101.910 6.178 0.908 1.664 0.874 1.106

Argentinas industrial production falls again

Mar 21
102.250 6.227 0.908 1.649 0.883 1.122

Mar 18
101.480 6.192 0.913 1.660 0.873 1.113

Mar 19
102.440 6.196 0.903 1.653 0.882 1.124

Mar 20
102.410 6.228 0.904 1.651 0.884 1.124

Wkly Chg
0.89% 1.27% 0.55% -0.95% 1.24% 1.05%

FEP Finance Club; Investing.com

COMMODITIES
0.48% -2.40% -1.16% -1.24%
Crude Oil WTI Natural Gas Crude Oil Brent Corn

-3.46% -5.27% 0.24% -2.49%

Gold Silver Copper Sugar

Mexican Retail Sales fell to a seasonally adjusted -0.3%, from 2.2% in the preceding month, while analysts had expected it to fall to 0.2%. Argentina's inflation rate slowed to 3.4% in February, the second monthly reading of a new consumer price index that came in far under expectations and left analysts with continued doubts about accuracy. Moreover, Argentina's industrial production contracted 0.5% in February from the same month last year, marking the seventh consecutive monthly loss in factory output due in part to weakness in the auto-making sector. Analysts had forecasted a 2% drop in February, while factory output rose 0.2%.

Oil rose amid fallout from Ukraine Crisis

Oil ended the week with a gain on speculation over the fallout from the Ukraine crisis and amid indications the U.S. economy is improving. On the metals front, Gold posted the biggest weekly loss in four months, following Feds decision to taper its monthly bond buying program and on expectations that the Fed could hike interest rates earlier than previously thought. Finally, Natural Gas declined as investors bet seasonably mild weather, typical of this time of year, will curb demand for both heating and air conditioning across much of the U.S.

FEP Finance Club; Investing.com

US TREASUR Y YIELDS
Mar 17 US 3M US 1Y US 10 Y US 30 Y 0.051% 0.122% 2.694% 3.631% Mar 18 0.056% 0.122% 2.674% 3.615% Mar 19 0.056% 0.132% 2.773% 3.659% Mar 20 0.061% 0.134% 2.773% 3.665% Mar 21 0.053% 0.129% 2.746% 3.609%

FEP Finance Club; Investing.com

Ana Reis

Beatriz Fougo

David Novo

Jos Silva

Pratik Ashok

Pedro Santos

Financial Markets | fepfinanceclub@gmail.com|www.facebook.com/FEPFinanceClub

Page 2/2