El Ibex and the rest of the European stock markets fell this Monday (Ibex: -0.84%. 6,872 points) due to the news about illicit activities of several banks. In addition, it also weighs negatively that a second volunteer in the AstraZeneca vaccine trial against Covid-19 has developed an "unexplained" neurological disease.
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Several global banks moved large sums of allegedly illicit funds over a period of nearly two decades, despite red flags about the origins of the money. The reports came on Sunday by BuzzFeed and other media, citing confidential documents submitted by the banks to the US government.
The news is based on leaked Suspicious Activity Reports (SARs) submitted by banks and other financial companies to the US Department of the Treasury's Financial Crime Enforcement Network (FinCEN).
Five global banks appear most frequently in the papers: HSBC, JP Morgan, Deutsche Bank, Standard Chartered, and Bank of New York Mellon. SARs provide key intelligence information in global efforts to stop money laundering and other crimes. The media paints a picture of an organization allowing large amounts of illicit funds to move through the banking system.
In addition to this news, which will undoubtedly be talked about a lot during the day, it is important to note that a week begins in which central bankers are going to be protagonists after "sowing great confusion and uncertainty about the path of their next steps "last week, says Michael Hewson, chief analyst at CMC Markets in London.
"Over the next four days investors will hear from Fed Chairman Jerome Powell testifying before the House Financial Services Committee and the Coronavirus Crisis Subcommittee (Tuesday and Wednesday, respectively). We'll also hear from people like Federal Reserve Governor Lael Brainard, as well as Charles Evans of the Chicago Federal Reserve; Thomas Barkin of the Richmond Federal Reserve; Loretta Mester of Cleveland; Eric Rosengren of the Reserve. Boston Federal and Mary Daly of the San Francisco Federal Reserve for the next two days, "Hewson explains. In addition, this Tuesday Andrew Bailey, Governor of the Bank of England, will speak before the British Chamber of Commerce.
Preliminary PMIs for September will be released on Wednesday, with investors keeping an eye on macro data as coronavirus infections rise and localized closings begin to be announced.
"Faced with concerns about the next steps that governments could take (...), with an increase in infections causing an increase in hospitalizations, we now have the spectacle of scientists and epidemiologists who publicly disagree on the next steps to take, with some politicians too keen on fostering some of these divisions. In the UK, there is talk of another shutdown in London as the Mayor, Sadiq Khan, reflects on his next steps in the face of rising infection rates, "says Hewson.
As for the Ibex, be careful because the selective is losing the support of 6,900. "Be very careful about abandoning this price level, as we could end up seeing an extension of the falls to the key level of 6,788 points. If it does not manage to hold on to these prices, it is likely that we could end up seeing an extension of the falls up to 6,400 points ", warns César Nuez, analyst at Bolsamanía and head of Trader Watch.
