The Ibex 35 has dropped 1.11% to 6,763.40 points, after marking an intraday high of 6,950 points, pressured by declines in banks (Bankia, BBVA, Sabadell) but especially in Inditex (-5%) . This after the hard drop close to 4% registered this Wednesday and which ended a rebound of more than 15% from the lows of March.
- 11.674,800
- 0,33%
The numbers related to the coronavirus are still tremendous and very worrying. Global cases have gone over 2 million. Bloomberg highlights that France has registered the worst number of daily deaths so far and that new infections have rebounded in Spain after six consecutive days of declines.
In addition, it also highlights that Portugal also experienced an increase in new infections. Deaths in the United Kingdom have decreased slightly. There, officials see signs that the virus may soon peak.
Again, the focus this Thursday is on the weekly unemployment figure in the United States, a reference that has been disastrous in recent weeks. Unemployment requests have risen by 5.2 million and, in total, the virus has already destroyed 22 million jobs in recent weeks.
It should be recalled that China will announce the GDP data this Friday, which is expected to show a historical drop in economic activity that will highlight the magnitude of the task that governments and world monetary authorities have to revive their economies.
In the business results sector, today L'Oreal and LVMH present theirs in Europe. In the United States, the big banks continue their results parade, with Morgan Stanley (32% drop in profit) and Bank of New York Mellon's turn today.
In other markets, Brent oil falls 0.7% to $ 27.50, as concern about the abundance of crude in the market at a time when demand has been decimated exceeds the production cut announced by the OPEC. In addition, the euro depreciates 0.6% and changes to $ 1.0838, while the yield on the Spanish 10-year bond relaxes to 0.81%.
Ultimately, the oil market needed the cuts agreed to by OPEC + months ago, because demand has plunged so far that it has left the real oil market overwhelmed.
Donald Trump will announce today the guidelines to reopen economic activity. The US president said on Wednesday that the data suggests that the country has passed the peak of new coronavirus infections and reaffirmed the policy they are carrying out to face the pandemic.
A growing number of European countries have cautiously begun to ease restrictive measures on public life and business this week, and Germany has been the last to establish a roadmap on how its economy will reopen. Smaller businesses will be able to reopen on April 20, as long as they can implement good hygiene measures, and schools will reopen on May 4. However, mass gatherings have been banned until August 31.
TECHNICAL ANALYSIS
"The Ibex closes far from the session lows and manages to stop the corrective movement of the last two days after partially filling the bullish gap (support) of 6,580 points. That is why we say that despite the loss of ' market momentum or cruising speed we still have no confirmation that the rebound has come to an end, "argues José María Rodríguez, analyst at Bolsamanía.
"At the end of the day we continue to have very short-term rising lows and highs and so it does not fall. So, at this moment we are in nobody's zone, halfway between the support that it presents in the mentioned bullish gap and the highs this Tuesday at 7,210 points, not to mention the resistance it presents in the bearish gap of 7,450 points (38.2% adjustment), "adds this expert.
