The Ibex conquers 7,200 and goes over the highs of April after 7 days in green

Both the Spanish selective and the rest of European stocks continue to want to rise, but they move in an "uncertain positive context", as CMC Markets points out. On the one hand, we want to continue rising and we welcome any advance related to the coronavirus.

On the other, no one escapes that there is still much to be seen in terms of the economic impact of the pandemic, that there is a risk of a re-emergence of the virus and that there are a number of added problems - the protests in Hong Kong, the tensions between China and the US or the uncertainties about Brexit when a new round of negotiations begins - which are being ignored for now.

This Thursday, the European Commission's plan to allocate 750,000 million for the euro zone to recover from the pandemic has continued. Of that money, it is calculated that 140,000 million would be for Spain. Despite doubts about its implementation, the first positive effect has been the relaxation of risk premiums. The yield on the Spanish 10-year bond has dropped again to 0.59% from 0.65%, less than half that of a month ago; and the risk premium has fallen to 102 points from 105.

In addition, the euro appreciated 0.43% and trades at $ 1,1051, while Brent oil fell 0.8% to $ 34.45. On the other hand, the latest revision of the US GDP has turned out to be even more devastating. The world's largest economy has contracted 5% until March, compared to 4.8% anticipated in the first reading published a few weeks ago. Nonetheless, Wall Street continues to discount a recovery in 'V' and is approaching its all-time highs.

As for aspects of the agenda for the day, the CPI in Spain has deepened its drop in May to -1% due to gasoline and the Covid-19 effect. The preliminary CPI for May in Germany was up 0.6%, in line with expectations and against the previous 0.9%.

In Spain, Nissan has made the news, which has finally confirmed the closure of its factory in Barcelona and the dismissal of 3,000 employees. In addition, Alcoa has announced the dismissal of 534 employees in Lugo due to an "unsustainable" situation.

TECHNICAL ANALYSIS

"We are going to see what the closure of the weekly candle has in store for us this Friday, but the feelings are not bad. A weekly closure with slack above 7,210 points would leave the door open to a scenario of continuity of the rebound with targets at 7,440 points (last bearish gap), says José María Rodríguez, analyst at Bolsamanía.

"And if this closes, or what is the same, it is canceled, we have 8,000 points (50% retracement) and at most 8,450 points (61.8% retracement and weekly bearish gap). As a shorter support term, the most immediate is at 7,000 points ", adds this expert.