Ibex 35 has risen just over 0.8% (8,811 points) on Tuesday. The surprise announcement of the Federal Reserve of the United States (Fed) to lower 50 points interest rates has been well received at the beginning and boosted it 2% initially however it has not lasted and the Ibex started deflating shortly after that. It has closed away from the 9,000 points it had reached at one point during the session, it has risen over 3%. The Fed's decision comes after the G7 has met and acknowledged that it is ready to act against the coronavirus, although without announcing the specific measures expected by the market.
- 11.674,800
- 0,33%
The Spanish banks have been practically the whole session going up after the EU Court of Justice has been less hard than expected on the IRPH, although it has opened the door to be considered abusive if so determined by the court in each case. But in recent bars, following the Fed's decision, BBVA (-0.86%), Santander (-0.60%), Sabadell (-0.77%) and Bankinter (-0.23%) have turned around and have closed in red.
This news seems to have gone unnoticed by CaixaBank which closed on Tuesday as one of the most bullish of the selective, with an advance of 3.74%, it has risen to around 6%.
The central bank of Australia has cut rates this morning by 0.25%, to the historical minimum of 0.5%, due to the coronavirus, thus opening the way for other central banks to operate. "The global outbreak of the coronavirus is expected to delay progress in Australia towards full employment and the inflation target," said RBA Governor Philip Lowe.
The governing board of the central bank "has therefore considered it appropriate to further facilitate monetary policy to provide additional support for employment and economic activity," he added.
In this scenario, the market already discovered that the US Federal Reserve will lower rates at its meeting in mid-March, while in Europe and Japan the scenario is different because the rates are already negative. The ECB has asked governments for fiscal measures and at the same time works to provide liquidity to companies, according to Reuters, in auctions similar to those held for banks targeting SMEs.
Apart from the coronavirus, attention returns to the US on Tuesday, where the 'super Tuesday' of the Democratic primary takes place. Bernie Sanders, Joe Biden, Elizabeth Warren and Michael Bloomberg are the four most relevant Democratic candidates in the race for becoming Donald Trump's rival in the next presidential elections to be held on November 3.
In the Euro Zone, inflation moderated to 1.2% in February due to the impact of the coronavirus. Unemployment in the Euro Zone, meanwhile, remained at 7.4% in January. In Spain, unemployment fell by 7,806 people in February, its biggest decline this month since 2017.
In other markets, Brent oil picks up 1.2%, up to $ 52.53, in anticipation of an additional production cut by OPEC. In addition, the ounce of gold rises 0.8%, up to $ 1,608.
For its part, the euro increases in value 0.4%, up to $ 1,1175, when investors discount a rate cut by the Federal Reserve (Fed). Finally, the profitability of the Spanish 10-year bond
Tuesday is similar to these previous days, marked by the high volatility. In the short term, the Ibex has an important support in the area of 8,500 points and resistance at 9,100 points.
