The Ibex 35 has rebounded 2.44%, to 7,174.50 points, after having risen 3% and set an intraday high of 7,229 points. The rebound of the automobile companies and of the banks has boosted the European stock markets, and the Spanish selective has increased in value supported by stocks such as IAG, CIE, Amadeus, Aena, Inditex and Santander. The index has hit the April highs, at 7,210 points, but has not been able to overcome this resistance level. In any case, it has extended its hot streak in recent sessions.
- 11.432,300
- -0,31%
One of the main news has been the announcement of the European Commission, which has proposed a recovery plan that would reach 750,000m in two years and that will be channeled to governments mainly through direct transfers (500,000m), but also it would include a portion of loans (250,000m).
Spain would have access to 140,446m euros from the recovery fund, of which 77,324m would come through direct transfers and the rest as loans to be repaid.
It is, however, a proposal from Brussels that must now be discussed by the Heads of State and Government and agreed with the European Parliament, so the figures included in the final agreement on the reconstruction plan will be different.
In any case, the announcement has helped to relax risk premium spreads in the euro zone. The yield on the Spanish 10-year bond has declined sharply to 0.65% from 0.7%, half that of a month ago; and the risk premium has fallen to 105 points from 113.
In addition, the euro appreciated 0.14% and changed to $ 1.0995, while Brent oil fell 2.3%, to $ 35.37.
In addition, the Fitch agency worsened its contraction forecast for the Spanish economy last night to 9.6%, compared to the 7.5% drop estimated at the end of April. The agency cut its forecasts for world GDP, although it added that "the fall in world economic activity is close to reaching its lowest point and the collapse may be close to bottoming out."
Finally, the President of the European Central Bank (ECB), Christine Lagarde, has participated in a virtual session answering the questions published on social networks. Lagarde has said, among other things, that the economy of the euro zone will contract between 8% and 12% in 2020.
At the geopolitical level, tensions between China and the US have returned to the spotlight, although the markets seem bent on not paying too much attention to this issue. Donald Trump has said the US is ready to take "very interesting" actions towards China by the end of the week regarding Hong Kong, where protests continue against Beijing's plans to change national security laws.
TECHNICAL ANALYSIS OF THE IBEX
"The Ibex has reached the intraday mark, by ten points, prices above the April highs (7,210) but finally has not been able to close above. Ideally, it should be done in weekly candles, since somehow this type of closure is more forceful and I would dare say more reliable, "says José María Rodríguez, analyst at Bolsamanía.
"And if it did, only then, we will start to think about 7,440 points (38.2%), 8,000 points (50%) and 8,350 points (61.8% of adjustment and weekly bearish gap). Summarizing, the Sensations are still good but the most important thing is missing, confirming above the April highs with ease, "concludes this expert.
