The Ibex rebounds 1% after the new Brexit extension and awaits catalysts

"We have agreed to order the negotiators to keep talking to explore whether, even at this late stage, it is possible to reach an agreement," they explained.

On Friday, stocks fell sharply after the two leaders warned that there was most likely no deal at all. The three points that prevent the negotiations from being closed are the rules on competition, the arbitration mechanisms in case of dispute and the access of the European fishing fleet to British waters.

OTHER KEY FACTORS FOR THE WEEK

In addition to Brexit, investors are on the lookout for other important factors. On the coronavirus pandemic, Germany has approved a stricter confinement until January 10, which includes the closure of shops and schools.

In the United States, the Electoral College is preparing to certify Joe Biden as president on Monday, after the Supreme Court rejects the demands of Donald Trump, who has not yet recognized his defeat. In addition, Republicans and Democrats continue to negotiate a new economic stimulus program without success.

In addition, the FDA (Food and Drug Administration) has approved the emergency use of the Pfizer and BioNTech vaccine against coronavirus, so the country will be able to start vaccinating in the coming days.

On the other hand, the supervisory board of the European Central Bank (ECB), made up of officials appointed by the ECB and the main national banking regulators, will decide whether to lift the ban on banking to distribute dividends and how it is lifted in a meeting this week. JPMorgan anticipates "tighter restrictions" and a slow return on dividends for Spanish and European banks.

OTHER KEY NEWS

At the monetary level, this week the final meetings of the year of the Federal Reserve (Fed) and the Bank of England (BoE) will be held. For the Fed, Bank of America experts do not expect adjustments in asset purchase parameters. "The focus of the meeting will be the tone used by the US central bank, as we expect it to leave rates and asset purchases unchanged. We believe that neither economic nor financial conditions are severe enough to justify further easing of politics at this time, "they indicate from the signature.

And on the economic scene, on Wednesday there will be PMI manufacturing and services in Europe and on Thursday the CPI of the euro zone will be known. On Friday, the climax will be the 'quadruple witch hour', the quarterly expiration of options and futures on stocks and indices.

In other markets, Brent oil advanced 0.7% to $ 50.35, while the euro increased in value 0.25% and traded at $ 1.2141. In addition, an ounce of gold fell 0.3% to $ 1,837. Finally, the yield on the 10-year Spanish bond remains at historical lows of 0.01%.

And on a technical level, the Ibex could be starting a profit taking that can extend to the level of 7,835 points. If you lose this price level, we could end up seeing an extension of the falls to the level of 7,400-7,200 points, where the average of 200 sessions is located.