Ibex 35 has set a new intraday annual high at 9,650 points after Boris Johnson's crushing victory in the British elections. However, it has lost bellows in the final part of the day and has finished with increases of 1.01%, up to 9,563.70 points, slightly below the annual maximum in closures, which is located at 9,588 points.
- 11.154,600
- 1,56%
The result in the United Kingdom, means that Brexit with an agreement will move forward and, to a large extent, ends months and months of uncertainty in the British Parliament. The pound reacts upward after hearing the news, although experts warn that complicated times are coming, with the United Kingdom negotiating with the EU the commercial details of this exit, and that not everything is done.
Within the Ibex, IAG has shot up 12% and has set new historical highs. Ence, Santander, Sabadell and the rest of the banks have also risen very strongly. In addition, the euro falls in value 0.1% and changes to $ 1,1122.
"As we have emphasized several times, it is only the end of the Brexit kick off. The agreement of Prime Minister Johnson is only about ensuring an orderly withdrawal and negotiations on the future relationship are about to begin. The problem is that Johnson has committed not to extend the transition period, which will end on December 31, 2020. This leaves only 11 months to negotiate the future relationship, from goods, services and financial markets, to data exchange, "warn experts Danske Bank
Be that as it may, this triumph of Johnson represents progress in the process and less uncertainty, which is always good news for the market. Brent oil picks up 0.7%, up to $ 64.65, while the profitability of the 10-year Spanish bond falls to 0.43% and the Spanish risk premium falls to 70 points.
TRADE AGREEMENT BETWEEN CHINA AND EU
China has confirmed that it has reached a trade agreement with the US after the US media took for granted on Thursday a pact between the world's first two economies.
According to Chinese officials, the next step is for both parties to take the relevant legal measures and establish a time to sign the agreement. The Chinese authorities have also indicated that tariffs would be reduced in phases. After this confirmation, Wall Street has once again scored record highs for the second consecutive day, although it has subsequently turned down.
On the issue of tariffs, Deputy Minister of Commerce Wang Shouwen has explained that the US will eliminate them in phases, predictably when it is confirmed that China is meeting the terms of the agreement. Therefore, Wang has not detailed when the US will reverse the tariffs imposed to date. For his part, Trump has confirmed that the tariffs planned for this Sunday will not take effect.
In this regard, Beijing has confirmed that it will significantly increase purchases of American agricultural products, as noted by Deputy Minister of Agriculture, Han Jun. The latest information suggests that China will buy in 2020 about 50bn dollars in this type of products, although no quantities specified
TECHNICAL ANALYSIS
"The Ibex closes away from the highs of the day but marks a new support right in the bullish hole of today, at 9,468 points. That is, it would be nothing strange to be filled in the coming days, although it would be good to keep bullish the trading bias that this gap does not close. Or in other words, that the Ibex does not close in the next few days below 9,468 points, "explains José María Rodríguez, analyst at Bolsamanía.
"Above, on the resistance side, we have the 9,700 points as a projection (theoretical minimum) of the double soil that has been confirmed above 9,400. Although as can be seen in the daily graph of our selective there is a very strong resistance important in the environment of 9,730 points: the upper part of the potential lateral-slightly bullish channel through which the price has been shifting for a year, "adds this expert.
"As for companies, we can see historical highs of IAG this Friday and with the clear overcoming of the Inditex resistance after confessing to the market this week. In fact, it can be said that the textile giant of our country no longer presents resistance important to the historical highs, at 34.35 euros, "concludes Rodríguez.
