Brexit and Italy give a boost to the stock exchanges: the Ibex strengthens the 8,700

The London Stock Exchange has risen 0.36% while the pound yields 1% after Boris Johnson announced his intention to close Parliament until the eve of Brexit to prevent his EU exit plan from being vetoed. An application approved by the Queen of England.

And on the other hand, in Italy, the agreement between the Democratic Party and the M5S after lifting the veto on Guiseppe Conte, as the 5 Star Movement had claimed has livened the markets. Thus (Paris: -0.34%; Frankfurt: -0.25%; Milan: 0.00%).

Regarding the United Kingdom, the director of XTB analysis in London, David Cheetham has stressed that this "seems like a preventive attack by Boris against those trying to block a Brexit without agreement." And the fact that the queen approves his request, means the state of things are "more turbulent than ever and British politicians do not realize it. They have turned Brexit into a circus," says Naeem Aslam, head of analysis at ThinkMarkets.

However, the declines on Tuesday on Wall Street have weighed down the stocks of the Old Continent after the US bond market has begun to anticipate a recession in the economy. Geopolitics, with the commercial war between the US and China as the protagonist, but also with all these other issues, is undoubtedly the element that is marking the future of the market in recent days.

In this sense, we also talk about the differential between the 10-year bond and the two-year US, which has fallen to its lowest level since before the financial crisis. Yesterday, the profitability of the 2-year bond (1.52%) closed above that of 10 years (1.49%). "This is something that historically has always preceded a recession," Link Securities experts say. "The banking sector was the one with the worst behavior (yesterday in the US), being the most punished for the investment in the curve," these analysts added.

As for the macro data of the day, GfK consumer confidence in Germany in September has remained at 9.7, above expectations. At the business level, BBVA has announced that it will issue CoCos and Ebro Foods has announced the purchase of the premium rice brand Tilda. Outside of Spain, the British Thomas Cook collapses again after its rescue is approved.

For its part, it should be noted that oil rises more than 1% on Wednesday and chains its third session in green after the collapse of US inventories. Thus, Repsol (+ 2.6%) has led the increases in Ibex 35 on Wednesday, followed by Acciona (+ 1.77%) and Telefónica (+ 1.5%). On the opposite side, Mediaset, IAG and Indra have closed with falls close to 2%.