- But finally it has gone up only 0.34%, up to 9,788.90 points
The Ibex 35 has moderated its gains in the final stretch of the session after the statements of Mario Draghi and Jerome Powell, in which they have reiterated their messages about a progressive monetary normalization. After reaching a 1% rise and marking an intraday maximum in 9,876 integers, the selective closed with increases of 0.34%, to 9,788.90 points. That is to say, it still does not lose support but it is not decided clearly to attack resistances either.
- 11.701,900
- 0,98%
Within the Ibex, Merlin Propiedades clearly led the gains with increases of 3.14%, followed by Técnicas Reunidas (+ 1.78%), Colonial (+ 1.6%) and Santander (+ 1.42%). Good day also for Endesa (+ 1.06%), Telefónica (+ 0.85%), BBVA (+ 0.82%) and Iberdrola (+ 0.27%).
On the downside of the index, few values. CIE Automotive (-3.02%), followed by Siemens Gamesa (-2.2%), Amadeus (-2.01%) and Repsol (-1.62%). The oil company has been one of the main burdened for the selective. In the main boardsAmper and Pescanova, have rebounded by 12%.
DRAGHI AND POWELL
On the subject of monetary policy, Mario Draghi and Jerome Powell, the most powerful central bankers in the world, have spoken at the Forum organized by the European Central Bank in Sintra, Portugal. The ECB president has said that there are plenty of reasons to trust that inflation will maintain its upward trajectory and allow the regulator to start raising interest rates after seven years of cuts.
According to Mario Draghi, low levels of unemployment will push up wages, which should act as an engine of monetary normalization in the Eurozone.
For its part, the president of the US Federal Reserve (Fed) has indicated that inflation will not be out of control as in the 70s, when between 1966 and 1970 it skyrocketed from 2% to 5%. In his opinion, inflation expectations are well anchored and regulators have more experience and tools to control prices.
Powell has been more concerned about the financial imbalances typical of the economic boom, which have caused the last two recessions in the US. So monitoring markets is one of the main tasks of regulators. However, he pointed out that "the financial vulnerabilities of the US are moderate and are in line with the long term."
In his opinion, "although some asset prices are high compared to historical standards, I do not see any signs of excessive borrowing or leverage, and banks have much higher levels of capital and liquidity than before the crisis." After the words of Draghi and Powell, the euro barely moves and depreciates 0.03% against the dollar, up to $ 1.1585.
RETURNS WITH PROTECTIONISM
Michael Hewson, chief strategist at CMC Markets in London, points out that investors are still cautious because what seemed like only threats from the United States to China are becoming a reality. "Investor caution makes sense given the comments of Peter Navarro, commercial advisor to President Trump and author of 'Death by China: Confronting the Dragon', who has declared that the United States It has an advantage in this situation and that China has much more to lose ", says this expert.
"The tone and nuance of this observation is revealing in the sense that it seems to recognize that there will be a cost to the US, but that the Trump administration is calculating that the cost to China will be much higher in terms of the impact on Chinese GDP in China. This helps explain why Chinese markets have been hit in recent days, and this position may also be based on the fact that, while the US economy seems to be working well, the Chinese economy seems to be slowing down, recent retail sales figures were at their lowest point in several years, "Hewson explains.
Oil prices have moved sharply in these last days before the meeting of OPEC (Organization of Petroleum Exporting Countries) this week in Vienna, amid speculation that an agreement has already been reached to reduce the production ceiling between the Saudis and Russia, even though Iran would reject any form of compromise in this regard. The Brent barrel now rises 0.37% ($ 75.36) while West Texas adds 1.74% up ($ 66.20).
TECHNICAL ANALYSIS OF THE IBEX 35
"The Ibex 35 closes this Wednesday far from the maximum of the session, but the technical implications are zero, meaning that the control areas to be monitored are where we have them: the 9,600 points as support and the 9,985 points As resistance, therefore, to the extent that the price does not jump by one side or the other, we will not have any clue as to what the next movement in trend may be, "says José María Rodríguez, analyst at Bolsamanía.
