The Ibex extends the rebound from yesterday this Friday and rises 0.6% to 7,307 points. It could be said that the week has been quiet, but also that there has been a drop to the bottom, driven by the fear that the economic recovery will not be as fast as some expect. After good PMIs and a good German IFO, the European Central Bank (ECB) warned that this is not enough of a sign to think of a rapid recovery, saying that growth will remain weak for a considerable time.
- 11.154,600
- 1,56%
This Thursday, the positive evolution of the macro data was twisted with figures of weekly unemployment claims in the US worse than expected and a drop in GDP on the other side of the Atlantic of 5%, in line with expectations. On the other hand, banks rose strongly there after the Federal Deposit Guarantee Commission confirmed that it will make it easier for financial institutions to make large investments in funds, such as private equity. Additionally, banks will not have to set aside cash for derivatives traders between different affiliates of the same company, which could free up more capital. This, after the Federal Reserve (Fed) announced new restrictions on its dividends after the stress tests. The advance in banks led to increases, of 1% on average, on Wall Street this Thursday.
All in all, the European indices rise in the last weekly session. With today's increases the Ibex will try to save the week. It yields around 2% in the accumulated of the four previous sessions.
The health crisis remains the major concern for investors. The good news is that the European Medicines Agency supports the use of remdesivir, the Gilead Sciences drug, against Covid-19. The bad news is that the jump in the number of Covid-19 cases in the US continues - in states like Arizona, Florida, Texas and California - a direct result of the relaxation of the restrictions. Texas and Florida authorities have made the decision to stop the reopening of their economies. Connecticut, New York, and New Jersey will require people traveling from coronavirus hot spots to self-isolate for two weeks.
"The easing of restrictions has undoubtedly caused a jump in economic activity, but now we are seeing examples of how the health crisis is affecting the reopening of economies and investors are monitoring the situation," explains David Madden, analyst at CMC Markets in London.
As for the appointments this Friday, the President of the European Central Bank (ECB), Christine Lagarde, speaks today.
As for the technical aspect of the Ibex, Bolsamanía analysts recall that it has support at 7,062 points, while its main resistance is at 7,663 points, maximums of the bearish gap that was left on the 11th.
