October has erased the smile off investors. The Ibex rose 4.9% in September, but in just one week it has halved these gains. In the last five sessions, the Spanish team has fallen 2.48% and has reached 8,961 points. And the situation could have been worse without the rebound of 0.67% on Friday and that has allowed it to recover the 8,900 points.
- 11.449,000
- -0,16%
Until today, the Ibex had closed every October in 'red numbers'. In fact, it also opened this Friday in negative, until the unemployment data in the US was revealed, which revealed a 50 year low and has exceeded the catastrophic forecasts of analysts.
The rest of Europe has also closed in positive, although doubts remain and the considerable pressure that is prevailing in October, makes cuts a likely option in the coming days. The persistent bad macro data (with the exception of the strike known today), added to the 'new' open trade war between the United States and Europe, are two elements that go well with the existing concerns over the relations of the US with China and Brexit, among other elements.
HIGH HOPES FOR ANOTHER FED CUT
The 'positive' side of this situation is that the expectations of a rate cut by the Fed at its October 30 meeting will be handicapped. This possibility boosted the Wall Street exchanges yesterday, which is also listed today in green. "Today you can hear the comments of the Fed from the hand of several of its members, such as Rosengren, Botstic and Powell himself. Powell will only speak at the opening of an event, so we would not have too many illusions about the possibility of that emits new monetary policy signals, "the analysts at Danske Bank point out.
Back in Europe, the president of the European Council, Donald Tusk, has said he is "open but not convinced" by the proposals of British Prime Minister Boris Johnson to reach an agreement on Brexit. Investors remain very aware of this matter.
COMPANIES AND OTHER MARKETS
In the business field, it is worth noting the 1.91% drop from Ence, which during the session has set new annual lows at 3,042 euros, after Kepler has cut its price, although it sees tremendous potential of 80% outside of Spain there has been talk of the progress of the CEO of BP and the cutting of HP jobs, which has plummeted by 10%.
In addition, in the raw materials market, the barrel of Brent rebounds after the losses of the last days. At the close of the session in Europe, 1.58% of a rise, up to $ 58.64. And in the currency market, the euro increases in value 0.18% and changes to $ 1,0984.
TECHNICAL ANALYSIS
"Although without much conviction, the truth is that it seems that the rebound wants to come. Which is not surprising given the strong daily oversold that we have raised in such a short time, as well as the fact that the Ibex has corrected, to the cent, 50% of the whole increase since the minimum in August, "says José María Rodríguez, an analyst at Bolsamanía.
"While if we look at the Dax or the Euro Stoxx 50 these have corrected a little more, staying halfway between the level of recoil between 50% and 61.8% of adjustment. Which means that under normal conditions it fits to bet on a rebound in the very short term. And it would be nothing strange that after this rebound the falls return, "he adds.
"Depending on whether the minimums of this Thursday's session are respected or not, we can talk about the possibility of trying to build a market floor to rise again. While if the minimums are drilled, then It is possible to shuffle as a more probable scenario a new trip down. But for now we will see if the rebound arrives and where it gets tired, "concludes the analyst.
