The green numbers are reaffirmed in Europe. The Ibex has managed to rise 0.4% supported by the increases in banks and after the unprecedented collapse in the PMI services and manufacturing of the Old Continent in April, which have been well below previous data. The eurozone compound PMI shows a collapse in April to its record low of 13.5, a reading still lower than the 29.7 recorded in March. This represents the largest monthly decline in total activity recorded in more than two decades of study data collection.
- 11.105,500
- 0,50%
Bankinter (+ 3.74%) was the business protagonist of the session. The 'orange entity' has kicked off the season of results for the first quarter of the Spanish banks with a drop of 10.1% in profit after provisioning 107.3 million for Covid-19. The bank has underlined, however, the solidity of these figures despite the complicated context, with progress on all its margins. Outside of Spain, Credit Suisse has also published results. It increases its profit by 75% until March but multiplies its provisions by seven. The bank has cut its dividend in half.
The indices recovered yesterday as oil stabilized. Today it is climbing with enthusiasm (12% on average), with June futures for West Texas at $ 15.73 and those of Brent at $ 22.34. The rebound in crude oil is also supported by the President of the United States, Donald Trump, who has warned Iran that if any of its ships "harass" any ship in the United States, it will be shot by the US Navy. Some believe that the President of the United States is intentionally stoking political tensions to raise the oil market.
All eyes were on the same day today on America's weekly unemployement report. The virus has destroyed another 4.4 million jobs in the country and the total number already exceeds 26 million in just five weeks.
In the midst of all this, today there is a meeting of the European Council (EC) to start discussing the so-called 'Marshall Plan' for the recovery of the economies of the European Union (EU) after the pandemic. In addition, the market expects the US House of Representatives to endorse the $ 484 billion aid package to curb Covid-19. If the deal passes, $ 320 billion will go to the Check Protection Program, an initiative that helps companies pay their workers during the shutdown. Another $ 60 billion will go to small business loans. The funds will also go to hospitals and coronavirus testing.
TECHNICAL ANALYSIS
"In reality, everything remains exactly the same on the Ibex as what has been discussed over the last two weeks. The only difference that I observe is that it seems that the banks could attempt a rebound from here, at least a small one," explains José María Rodríguez. , technical analyst at Bolsamania.
"In fact, BBVA is rebounding from the base of the very short-term triangle and the European banking sector, the EURO STOXX Banks, is trying to react from the support it presents at all-time lows," he added.
"If the banks rebound the Ibex rebounds. Therefore, as long as the bullish gap of 6,580 points is not closed (annulled), it is possible that from here we will try to rebound again towards the resistance areas of 7,210 points and above 7,450 and 8,000 (50% retracement / proportional adjustment) ", concludes the expert.
