Ibex 35 has signed a moderate rebound (+ 0.39%; 9,404.70 points) despite the fact that the coronavirus remains the global concern for investors. After being closed for the celebrations of the Lunar New Year, the Chinese squares have returned to quote with collapses of 8%. The holidays have been extended, the schools are still closed and all the necessary measures are being taken to prevent the spread from spreading. However, the problem does not seem to be going less and that keeps the markets extremely tense.
- 11.469,600
- 0,30%
"The vast majority of cases occur in China, but the virus has spread to at least 17 other countries. The United States has declared a health emergency. Last week it was confirmed that two people in the United Kingdom tested positive. of coronavirus. China, the world's second largest economy, is at the center of the crisis. It is a major importer of commodities such as copper and oil, and both markets have suffered huge losses recently, "explains David Madden, an analyst from CMC Markets.
The People's Bank of China has taken steps to stabilize the situation and has injected liquidity worth 173,000 million dollars through various operations. Similarly, the interest rate applied to liquidity auctions with a seven-day maturity has been reduced to 2.40% from 2.50%, while in two-week operations it has cut the financing cost by another ten basic points, down to 2.55%. In addition, the Caixin survey of the manufacturing industry has been below expected (51.1 when expected 51.3 and compared to the previous reading of 51.5).
It should be noted that on Monday, manufacturing PMIs in Europe have been published. In Spain, factories destroy jobs at the fastest pace in more than six years. In the Euro Zone, the manufacturing sector has started 2020 with signs of recovery. The January PMI stood at 47.9, above the previous reading of 46.3. And in the US, also positive surprise, since the manufacturing ISM has been above 50, indicating expansion of activity. This has pleased Wall Street, which rebounds more than 1% after the heavy losses on Friday.
From the business point of view, the rebound in Siemens Gamesa (+ 5%) after the hit last week due to a 'profit warning' and while talking about a possible departure of Iberdrola from its capital, where it controls the 8 %.
In the court rooms, the National Court (AN) has admitted an extension of the complaint against Abengoa and Deloitte for an alleged crime of investor fraud for the alleged accounting alteration of the accounts between 2014 and 2016 with detrimental effects on its partners and shareholders. In addition, the AN has published the results of the investigation into BBVA contracts with Commissioner José Manuel Villarejo.
In another order of things, on Monday the primary of the US Democratic Party officially begins in Iowa, where the favorite is Bernie Sanders, a leftist candidate. Analysts say this "could make financial markets shake."
Meanwhile, the Brexit hangover continues, with the whole world awaiting trade negotiations between the United Kingdom and the EU. This Monday, Prime Minister Boris Johnson has stated that Britain does not need an agreement with the EU. Johnson has presented himself as an advocate of "global free trade" and has warned that he would prefer to accept tariffs under EU law.
In other markets, Brent oil falls 2.2%, to $ 55.36, because investors anticipate lower demand from China, which will cause an excess supply globally. On the other hand, the profitability of the Spanish 10-year bond rebounds slightly to 0.25%. Finally, the euro falls in value 0.33% and changes to $1.1056.
TECHNICAL ANALYSIS
"The rebound of this Monday in our selective has no implications of any kind and fits perfectly within the corrective candle of last Friday. The only thing to note is that the minimums of this Monday fit with the minimums of the last week: 9,360 points. And above we have the resistance that we have talked about so much in recent days, the daily and weekly bearish gap of 9,562 points, "explains José María Rodríguez, analyst at Bolsamanía.
"Then in theory, whatever happens before, the perforation of the support or the overcoming of the resistance, will be what gives us the track of what is probably the next movement in the short-term trend. What's more, if by any chance the bearish gap is closed, it is likely that the index will end up confirming a double floor, aiming at the significant resistance of 9,700 points. That said, let's not get ahead of ourselves as today's sail is just a shy rebound that somehow corrects / adjusts the falls of last Friday, "concludes this expert.
