And after a session of strong climbs ... back to doubts. Volatility continues to mark the evolution of the markets and, after a day of increases, is followed by another day of decreases. This Wednesday, the markets falter again (Ibex: -0.2%) after the significant rise yesterday due to the geopolitical tensions between India and China and South Korea and North Korea, on the one hand, and at the resurgence of coronavirus cases in Asia and the United States, on the other. Beijing has raised the health emergency and asks that it not leave the city unless necessary.
- 11.105,500
- 0,50%
Tensions escalated across the Korean peninsula on Tuesday after North Korea destroyed a liaison office with the South. South Korea's presidential Blue House has signaled on Wednesday that it will not accept any more unreasonable behavior from North Korea, Reuters reports.
Meanwhile, Indian and Chinese troops have clashed again this week as part of a series of recent clashes in a controversial Himalayan border area, with a situation that, late Monday, caused casualties for the first time in more four decades.
Investors in Europe will also stay tuned to the latest news about the coronavirus today. The number of confirmed cases worldwide has already exceeded 8 million. The World Health Organization has warned that while the virus has slowed down in some parts of Europe, it is picking up speed in other parts of the world, including parts of Africa and America. The new group of cases in Beijing is also being closely monitored.
Among the good news related to the virus, it should be noted that on Tuesday scientists from the University of Oxford announced that dexamethasone, a cheap and widely available steroid, has been shown to save lives when administered to patients with severe cases of Covid-19.
This Wednesday, Jerome Powell, president of the Federal Reserve (Fed), will appear before the US Congress. During the past day, in his appearance before the Senate, Powell played down the Fed's decision to start buying corporate bonds, a decision that was one of the reasons put forward to explain the strong progress of the last session. At the macro level, the CPI for the United Kingdom in May was 0.0% compared to -0.1% expected and -0.2% previously.
Finally, in what has to do with the technical aspect of the Ibex, Bolsamanía experts point out that the selective could extend the rises, although they warn that, in the short term, once part of the gap left last week is covered, we could end up seeing several consolidation sessions in the vicinity of 7,500 points. The resistance that we do not lose sight of is at 7,649 points. A close above this price level would make us think of an attack at the 8,000 point level.
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