European stocks continue on Wednesday with gains (Ibex: +0.66%). It is speculated a possible bailout in the Italian banks which is pushing up Spanish banking sector. The Italian FTSE MIB rose by 4%, pushed up precisely by its banks, a sector with a critical financial situation within a country with an even more critical political situation.
From a more operational point of view, it is said that Tuesday's gains were also due to those who are short in banks opened long to cover the declarations that the president of the European Central Bank (ECB), Mario Draghi, can do this Thursday. Draghi is expected to announce an extension of the asset purchase program in six months, while maintaining the monthly amount for these purchases at 80,000 million euros. The agency will also make public its economic forecasts and, although this is already foreseen and may even be discounted, it is well known that Draghi has the ability to make markets rise every time he speaks... and it is not expected that this Is different from the view of the desire of the markets to continue with the increases.
This Wednesday, therefore, will be a day of transition calls after the strong rise of this Tuesday and we are waiting for what will happen tomorrow with the ECB (holiday of the Day of the Immaculate in Spain). The political agenda in Spain is literally halted while the economic calendar also brings few prominent references this Wednesday, except for some industrial production data in Germany and the United Kingdom. In business terms, it should be noted that Credit Suisse has reduced its pre-tax income targets for 2018 in its Asia Pacific divisions and its capital management division. It has also reported on Wednesday more than 1 billion Swiss francs in additional cost cuts, according to Reuters.