The Ibex rises more than 2% (+ 2.4%. 7,964 points) driven by the tremendous rise in banking after the operation of BBVA, which has sold its business in the US for 9.7bn euros. BBVA shoots up 15% and Sabadell, which is seen as a possible takeover, advances 14%. Bankinter and Santander appreciated 5%, while Bankia and CaixaBank increased 3%.
- 11.154,600
- 1,56%
BBVA has announced the sale of 100% of its US subsidiary to PNC Financial Service Group. The agreement reached does not include the sale of the group's institutional business developed through its broker dealer BBVA Securities or the participation in Propel Venture Partners US Fund I. The transaction price will be paid entirely in cash.
The other issue of the day has to do with Asia, where the largest trade agreement in the world has been signed. "The signing of a new trade agreement between fifteen Asia-Pacific nations, called the Regional Comprehensive Economic Partnership (RCEP), is good news that marks the first trade partnership between China, Japan and South Korea, along with the signing of a series of minor agreements between twelve other Asia-Pacific nations, including Australia, Singapore, Thailand and Vietnam. It is estimated that bundling these various minor agreements into one large agreement could significantly reduce trade friction and help to give a significant boost to Asia's GDP for years to come, "explains Michael Hewson, chief analyst at CMC Markets in London.
Asian stocks have risen thanks to this pact and also to macro data. Japanese GDP has risen 21.4% in the third quarter, higher than expected. For its part, the latest economic data from China today was also welcomed as further evidence that the Chinese economy continues to recover slowly. The latest retail sales figures for October have continued the slow movement back into positive territory that began in August with a 0.5% increase, and was followed in September by a 3.3% increase. Today's October number, 4.3%, although lower than expected, was nevertheless greatly helped by the Golden Week holiday at the beginning of the month. "It bodes well for a strong end of the year, as that Singles' Day in November is likely to also offer a significant boost when the November numbers are released next month, "they explain from CMC Markets.
On the other hand, Brexit will be in the news this week with the celebration of a summit this Thursday. However, the market discovers that the talks will continue beyond this week, with the same fishing lines and a level playing field as the main obstacles to progress. Now it seems likely that the deadline for the talks will be extended even further, with a new deadline of December 10. British Prime Minister Boris Johnson has begun confinement after confirming the positive for coronavirus of a deputy with whom he had close contact. Johnson, who already passed the coronavirus in April, does not show symptoms at the moment, but will serve the mandatory ten days of confinement.
As for the technical aspect of the Ibex, after the strong rises this Monday, the Spanish selective is right at the resistance of 8,000 points, which is a key level. "You have to be careful because a gap has been left at the opening and this may mean that it slows down at these levels," warns César Nuez, an analyst at Bolsamanía and head of Trader Watch. If it breaks this level, it would seek to cover the bearish gap in March that it has at 8,375 points. "I believe, however, that today it will not be able to with 8,000 and that it may have a correction," warns Nuez.
