The Ibex and the rest of the European stock markets have extended the increases this Tuesday (Ibex: + 2.30%. 7,080; Cac: + 2.1%; Dax: + 2.8%) while that feeling of certain optimism persists regarding to the virus and its decline. Despite the increases, the Spanish index has closed far from the highs of the day, it has advanced more than 4%.
- 11.154,600
- 1,56%
Wall Street recorded in the last session a tremendous rise of no less than 7% and on Tuesday it rebounded by 3%; and in Asia, green numbers have prevailed. The idea that the worst could already be happening is spreading, especially in Europe, and that encourages the stock markets.
"In the last few hours we have seen the announcement of a variety of new measures to cushion the economic effects of the virus by the governments of Japan, Singapore and Spain, while in the United States there is the prospect of another stimulus package at the end of this month or early May. Germany also said it was planning an 'unlimited credit' service for small businesses, "says Michael Hewson, chief analyst at CMC Markets in London.
European finance ministers meet on Tuesday to try to draw up a collective aid plan to help cope with the economic disruption caused by the coronavirus. "One thing seems certain, the 'coronabonos' will not be discussed. Even if only Germany, the Netherlands and Austria oppose this measure, they are likely to block them. ... It is possible that there are lines of ESM credit, "adds Hewson.
The pound fell sharply this Monday night on the news that British Prime Minister Boris Johnson has been transferred to the intensive care unit at London's St. Thomas Hospital to better treat his coronary heart disease, while continuing his own battle against the virus. Foreign Secretary Dominic Raab will replace the Prime Minister in his absence.
The price of crude oil rebounds slightly at this time on Tuesday (Brent 0.18%, West Texas 0.88%) while pending the ability of OPEC + members to unite around an agreement to reduce production. According to some OPEC + sources, any deal on Thursday is likely conditional on the US being part of those cuts, against the backdrop of reports that storage facilities in Cushing are filling up quickly.
Analysts have many doubts about the possibility of the US participating in a cut agreement. However, if it has nowhere to store excess production, US producers may have no choice but to stop pumping crude.
TECHNICAL ANALYSIS
"The Ibex closes far from the highs of the session after reaching a 4.01% rise in the best moment of the day. Let's say that after a rebound of 22.45% from the lows of March (5,814) there is some altitude sickness in the very short term, "explains José María Rodríguez, technical analyst at Bolsamania.
"Especially since we have around the corner an important resistance zone that will not be easy to leave behind: the bearish gap of the session on March 12 at 7,440 points and 38.2% adjustment / fall of the strong previous fall ", qualifies.
"At the bottom, on the side of the supports, now we will look at 6,420 points. In short, we continue to rebound but it is taking a lot of effort to climb positions, too much," concludes the expert.
