- Italy will keep the deficit for 2019 unchanged and cut the 2020 and 2021 deficits
While Italy was a drag on the last session, this Tuesday it has been the main driver of the European stock markets. In the case of the Ibex 35, the rise was 0.6% at the close, standing at 9,361.1 points. The Spanish selective has finished the day away from the highs of the day (9,424.7), despite closing in green.
- 11.659,200
- 0,35%
The parks of the Old Continent, in general, have started the day with gains, which have been extended to half a session once the Italian Deputy Prime Minister, Luigi Di Maio, has confirmed that the Executive values to lower the deficit targets for 2020 and 2021 while it remains unchanged, at 2.4%, that of 2019.
Thus, the main European stock exchanges ended the session with promotions of between 0.1%, in the case of the Lisbon Stock Exchange, and 0.8%, in the case of the Milan Stock Exchange.
THE ITALIAN DEFICIT REMAINS IN 2019
The Italian government signed the macroeconomic table for the next three years on September 27 and set its deficit forecasts at 2.4% for both 2019, 2020 and 2021.
"The figure of the deficit of 2.4% of GDP remains for 2019," Di Maio told the media on Wednesday, although he acknowledged that by 2020 and 2021 the Executive is studying to reduce the deficit forecasts with incentives for growth and cuts in expenses.
For his part, the Finance Minister, Giovanni Tria, said that "the development profile of the deficit will experience a limited increase in 2019 compared to 2018 and a gradual reduction in the following years." The market speculated that Italy announced a deficit target of 2.2% for 2020 and 2.0% for 2021, but neither Di Maio nor Tria have specified in this regard.
POLICTICS TAKES ALL THE ATTENTION
Along with Italy, there are more political issues that attract the attention of investors on Wednesday. In Spain, all the media talk about the "blackmail" of the president of Catalonia, Quim Torra, to the chief executive, Pedro Sanchez, who threatens to withdraw support in a very short time if it is not folded to their demands secessionists. In fact, the 'president' has formally invited the President of the Government to meet "in the coming weeks" at the Generalitat to discuss Sánchez's project for Catalonia. Similarly, in the United Kingdom the situation threatens to blow up after a conservative deputy has registered a question of confidence against prime minister Theresa May to challenge her leadership, which could see her exit from Downing Street and, at the same time, could mean a new stumbling block in the negotiations on the 'Brexit'.
INCREASES AND FALLS IN THE IBEX
Back to the Ibex and as far as the corporate plan is concerned, it is worth highlighting the strong falls suffered by Grifols on Wednesday. The manufacturer of blood products has been the most bearish value (-5.37%) after the UBS analysts have downgraded their recommendation to 'sell' and the target price to 18 euros per share (the company has ended the session in the 23.09 euros). The other two companies that have yielded the most in this trading session were Aena (-0.85%) and Indra (-0.66%). On the other hand, the most bullish values were Telefónica (+ 2.43%), Banco Santander (+ 1.82%) and DIA (+ 1.58%). The latter has benefited from the increase in the shares in its capital of Goldman Sachs and Norges Bank, up to 17.79% and 5.286%, respectively. Meanwhile, the profits of the 'teleco' and the entity chaired by Ana Botín probably have to do with the strong appreciation of the Brazilian real in the last sessions.
TECHNICAL ANALYSIS
José María Rodríguez, technical analyst of Bolsamanía, highlights that the Ibex closes away from the highs of the day, "although at least it is making it clear to us that the support it presents at 9,300 points is supporting the prices".
"Therefore, beware of drilling this support because, below, there is nothing down to the annual minimums at 9,111 points", explains the expert. "On the other hand, the problem is that the resistance zones are quite far from the current price levels, so the most immediate and the most important is found in the endless 9,670 points, only above this, in closing prices and With ease, we will leave the door open for the corrective phase that began at the end of January has come to an end, "he adds.
"But in the meantime, the fact is that the possibility of returning to the annual minimums is a fact, by correlation, we will be attentive to the important support of the Italian stock market (FTSE MIB) at 20,240 points. transalpine index in this support, or what is the same, as long as they are not drilled, it is expected that the rest of European stocks and especially our Ibex 35 do not go deeper into the falls ", concludes Rodríguez.
MAXIMUM IN THE DOW JONES
Finally, it should be noted that on the other side of the pond, the Wall Street Dow Jones index again recorded new highs this Friday after the last ADP employment report. The United States created 230,000 jobs in the private sector in September, and investors celebrate it in the New York market.
