The Ibex 35 has dropped 0.26% to 9.280.10 points, although it closed the week with a gain of 1.78%. The pessimistic statements of the Chinese government on trade negotiations with the US, and the collapse of the talks between Labor and Conservatives to negotiate Brexit have not pleased investors. However, the consumer confidence data marked 15-year highs in the US and boosted purchases on Wall Street, which has reduced the decline of the Ibex.
- 11.154,600
- 1,56%
At the business level, the main news focus was the result of the LetterOne takeover bid on DIA (-3%). Mikhail Fridman has taken control of almost 70% of the capital, but the uncertainty is at an all-time high because Santander has walked away from the table of negotiations. This has put the supermarket chain on the verge of bankruptcy.
The Cantabrian bank has also made headlines because it has been fined 6.4m euros by the Bank of Spain for breaching the law on commissions.
Also in relation to companies, the new stock market debacle of Thomas Cook, which has plummeted more than 30% after a downgrade of Citi, which has valued it at 0 pence, has been news out of Spain.
In other markets, the performance of the Spanish 10-year bond has fallen sharply again and has hit historical lows at 0.86%. In addition, Spain's risk premium has dropped to 98 points. For its part, the euro fell in value 0.16% to $ 1,1160, while Brent oil fell 0.1% to $ 72.60.
THE TRADE WAR IS WAITING IN THE WINGS
"The trade war between the United States and China could enter a phase of tranquility after the last escalation, now we must be on the lookout for more Chinese stimuli and more information on when the next round of talks in Beijing could take place." , explain the experts of Danske Bank.
"Although things can calm down for now, we still see a risk of another outbreak, since the two parties seem to be very far apart from each other in terms of the most critical points of the agreement. They need more financial stress to get enough pressure to reach an agreement, "they add.
THERESA MAY PREPARES HER DEPARTURE
Brexit returns to center staged, little by little. The pound has fallen to $ 1.28 after living a session of heavy losses on Thursday. In two weeks, after trying again to have her Brexit agreement approved by the British Parliament, Theresa May will present her timetable for leaving the Government.
At the moment, the former Foreign Minister, Boris Johnson, has already confirmed that he will stand as a candidate to replace the prime minister. "It is more than likely that the next prime minister will be a hardliner of the Brexiteers. The main fear for the market is that this means that a Brexit without an agreement is back on the table as an option, "says Jasper Lawler, director of analysis of London Capital Group.
In economic terms, the year-on-year inflation rate for the Euro Zone stood at 1.7% in April, three tenths above the level recorded in March and its highest reading since November 2018 as a result of the significant price increase of services. In addition, consumer confidence in the US has marked 15-year highs.
TECHNICAL ANALYSIS OF THE IBEX 35
"The Ibex closes away from the lows of the session and leaves us a positive accumulated rise in the week close to 2% The stochastic moment oscillator has turned sharply upwards and has come out of the oversold, which, in theory, It is warning us that the rebound may continue in the coming days and what is important is what we will do next week with the resistance we have in the weekly bearish hole of 9,410 points, "says José María Rodríguez, analyst at Bolsamanía
"Any possibility of real recovery, beyond the typical rebounds against a trend like the current one, happens because this gap closes, or what is the same because it is canceled, and preferably, in weekly candles. That indicates the phase of adjustment or reaction phase of the important accumulated increases in the world stock markets since the minimum of December has come to an end ", adds this expert.
"Or, in other words, there is nothing that tells us that we have touched the bottom, for the moment, everything is a simple rebound, in fact, it is normal that after this we visit again the lows of the last fall and depending on whether the supports are reached or not we can talk about a potential market floor or, on the contrary, the start of another new whiplash downwards ", concludes Rodriguez.
