The Ibex 35 has dropped 1.89% to 6,922.30 points, following the ECB's decision not to touch either the rates or the asset purchase plan. Of course, the body has said that it is "fully prepared" to increase the size of its QE. But this has not been enough for investors, who have penalized banks above all, also weighed down by the decreases in BBVA (-5.5%) and CaixaBank (-4.1%) after their results, greatly impacted by the coronavirus. Santander (-5.8%) has fallen very strongly and Sabadell has been the exception, advancing 1.4% after publishing its results 5.2%
- 11.105,500
- 0,50%
European stocks have been dominated by sales after trading green for much of the morning supported by the Federal Reserve (Fed), which yesterday promised cheap money and an open bar of liquidity "until necessary."
Christine Lagarde has tried to step into Mario Draghi's shoes and has promised more measures without being necessary, but at the moment her figure does not awaken the same confidence, especially because she continues to ask for coordinated fiscal stimuli in the eurozone that, for the moment, are very far away.
However, Ranko Berich, analyst at Monex Europe, has commented that "both in terms of political content and communication, Lagarde's appearance is by far the best of her term at the head of the ECB. The President of the ECB has managed to restore part of the constructive ambiguity around support for sovereign bonds that Mario Draghi carefully cultivated. "
Thus, central bank support collides with the stark reality of the data. The GDP of the first quarter in Spain has registered a historical collapse of 5.2% due to the coronavirus. France confirmed its recession with a record drop in GDP of 5.8% in the same period. And the GDP of the euro area suffered a record contraction of 3.8% from January to March.
All of this after yesterday's US GDP fell by 4.8% through March. This Thursday, we've seen the weekly unemployment claims rise by 3.8 million, above the 3.5 million anticipated by the consensus. In total, confinement with the virus has already destroyed more than 30 million jobs in the world's largest economy in just six weeks.
In addition, China has released its manufacturing and services PMI. Experts say April's manufacturing PMI has been expanding, but "is dangerously returning to the territory of contraction. The continued openness of the supply side of the economy has fueled the PMI, but given the worsening trade outlook, it is hard to see the index continue to expand. "
Finally, it should be noted that in Spain more companies besides banks, such as Atresmedia or Mediaset, have published results this Thursday. In Europe, the collapse of Shell stands out after cutting dividend for the first time since World War II. In the US, the figures from Apple, Amazon or Twitter will be known.
In other markets, oil shoots up for the second consecutive day after even Norway has announced cuts in its production. The Brent barrel advanced almost 13%, to $ 25.41. In addition, the euro appreciated 0.63% and changed to $ 1.0941, while the yield on the Spanish 10-year bond has continued to relax to 0.72%.
TECHNICAL ANALYSIS OF THE IBEX 35
"Although it is true that despite the falls this Thursday, our Ibex has not drilled any support, since the most immediate continues to be at 6,580 points, we have to tread carefully. And the reason is none other than the fact that we already have the Dax and the S&P 500 caressing very important resistance levels in the rebound: the 61.8% adjustment / fall, "says José María Rodríguez, analyst at Bolsamanía.
"The Euro Stoxx 50 is placed slightly above 50% and the Ibex has not reached even 38.2% (7,450 points). Which is a clear sign of weakness. Hence, I have my doubts about the good work of our index if by chance the rest of the indexes decide to take a little and deserved rest. A stop along the way. We have taken a long time to get on the rebound of our neighbors and this can be expensive when the next corrective section arrives ", concludes this analyst.
