There are doubts in the market. Doubts about whether coronavirus outbreaks are going to increase, doubts about whether the economic recovery is going to be 'V' shaped or going to be slower and more painful, and doubts about whether companies are going to surprise with a season of Second quarter results even worse than previously forecast. Those doubts do not allow the stocks to move upward with calm and firm steps, and the comings and goings have become a constant in recent days.
- 10.896,900
- -1,84%
Europe closed the last session with strong falls after the strong increases on Monday, and continues to decline this Wednesday. The Ibex drops more than 1% and loses 7,400 points. This, after Wall Street also ended in red yesterday, just as Asia did this morning, where the Chinese indices have deflated after two days of notable increases.
All in all, the Ibex has its first support at 7,062 points and the first resistance at 7,663 and continues to move between those two levels without opting for one or the other direction clearly.
This Wednesday there is a shortage of macro data and on the day's agenda are several appearances by Luis de Guindos, vice president of the European Central Bank (ECB). In addition, Rishi Sunak, UK Chancellor of the Exchequer, will be in the spotlight today as he will announce a "start-up scheme" before the British Parliament to help the economy and the UK youth. Some of the programs that he will announce are already known. Also related to the United Kingdom, it should be noted that Brexit negotiators held talks on Tuesday. British Prime Minister Boris Johnson has warned German Chancellor Angela Merkel that the United Kingdom is ready to continue without a trade agreement if the EU does not commit, while the United Kingdom remains committed to working hard to find a deal.
On the other hand, the eyes are directed this Wednesday to the meeting between the Prime Minister, Pedro Sánchez, who receives the Italian Prime Minister, Guiseppe Conte, at a meeting to debate on the European Recovery Fund and perhaps also on the candidacy of Nadia Calviño to preside over the Eurogroup.
Finally, remember that on Tuesday, the vice president of the Federal Reserve, Richard Clarida, said that the agency can do more to help the economic recovery. "There is more that we will do if necessary," he said. We recall that the next Fed monetary policy meeting is July 29.
