The Ibex 35 has rebounded 1.05% to 9,117.60 points, due to the hope that investors have on central banks applying more monetary stimulus in the near future (this Tuesday the Central Bank of Australia (RBA) lowered interest). The atmosphere has relaxed even more after the positive opening of Wall Street after falling yesterday and adding to the existing problems. Google, Facebook and Amazon fell sharply on the investigation prepared by the Department of Justice for breach of monopoly laws.
- 11.154,600
- 1,56%
Within the Ibex, this Tuesday we highlight the rebound of the steelmakers and also of Ence. Our experts emphasize that it is curious to observe how ArcelorMittal (+ 3%) and Ence (2.3%) have been moving side by side lately.
Also within the Ibex it is worth noting the good performance of banks, in particular of BBVA (+ 3%) and Santander (+ 2.5%), while, in the Continuous Market, Tubos Reunidos and Deoleo soar. The latter is already up 36%.
Outside the Spanish market, the food company Aryzta made the news as it is one of the main bets of the renowned manager Francisco García Paramés, which today falls by 10% after announcing a 'profit warning'.
LESS TRADE RELATEDSTRESS AND CALM IN ITALY
Another positive factor is that trade tensions between the US, China and Mexico have softened. Beijing said that there will be a meeting between Trump and Xi Jinping at the G20 meeting held on June 28 and 29 in Japan.
The market anticipates that this meeting can serve, at least, for both countries to resume trade negotiations, after the stagnation in May that has so badly affected the world's stock markets.
In addition, the president of Mexico, Andrés Manuel López Obrador (AMLO), has commented that negotiations with the US on the immigration issue are on the right track and that he hopes to close an agreement before the threat of new tariffs on products comes into force.
On the other hand, the calm also reaches Italian shores as it's stock market rises the highest on Tuesday after the Prime Minister, Giuseppe Conte, tired of the controversies between Matteo Salvini and Luigi Di Maio, leaders of the League and the Five Movement Stars, has issued an ultimatum and threatened to resign if the two do not cease their attacks.
THE FED WILL DO "WHAT'S NECESSARY"
Meanwhile, attention remains focused on the US-China trade war, but also on the weakening of macro data worldwide and the potential relaxation of central banks.
On "trade negotiations and other matters", Fed President Jerome Powell commented that "we do not know how or when these problems will be solved", although he added that "we are closely following the implications of these developments for the US economic outlook And, as always, we will act accordingly to sustain the expansion "
The president of the Federal Reserve of St. Louis, James Bullard, said Monday that a rate cut, currently set at a range of between 2.25% and 2.50% "could be guaranteed soon."
At the macro level, the CPI for the Euro Zone in May remained at 1.2% compared to the 1.3% forecast and the previous 1.7%. In the underlying rate, prices rose 0.8% year-on-year in May compared to the 0.9% expected. For its part, the unemployment rate of the Euro Zone in April remained at 7.6% compared to the expected 7.7%. In Spain, unemployment has fallen by 2.6% in May and has marked its lowest level in ten years.
In other markets, Brent oil rose 0.7% to $ 61.70. For its part, the euro fell in value 0.1%, to $ 1,1289. In addition, the Spanish risk premium has dropped to 87 points and the yield on the Spanish 10-year bond relaxed to 0.66%, the new historical low.
TECHNICAL ANALYSIS OF THE IBEX 35
The Ibex moves away from the support of 8,900 points and approaches its next immediate resistance, at 9,120 points. "It can be said that our first big goal of falling has already been fulfilled," says José María Rodríguez, an analyst at Bolsamanía, who stresses that this does not mean that the worst has happened. "It is impossible to know, but it is warning us that at current levels and a little lower we should find a potential ground for correction if we are really facing a simple adjustment of the whole rise from the minimum December ", adds Rodriguez.
"Meanwhile, we still have no figure of return of any kind, the normal thing is that prices will now rebound and we will see how far they come and depending on where this stops and what happens next (if we set new decreasing minimums or not ) we will have more information than what we have right now, "concludes this expert.
