- European markets were all down at the start of the week
- Jackson Hole symposium will be a key meeting this week
The Ibex 35 closed on Monday witha fall of 0.25% to 10,360 points, although at one stage at was above 10,400 points. The index has been seen affected by selling of banking stocks, while other European markets were down on average 0.5%.
- 11.656,600
- 0,39%
The fall of the six banks (CaixaBank (-1.20%), Banco Sabadell (-0.96%), Banco Santander (-0.95%), BBVA (-0.87%), Bankia (-0.82%) and Bankinter (-0.67%)), as well as Cellnex (-0.66%) and Iberdrola (-0.63%) were among the worst performers.
The gains were made by DIA (+2.01%), Acerinox (+1.67%), Acciona (+0.95%) and Ferrovial (+0.89%).
Investors continue to be alert to the actions of US president Donald Trump. The recent removal of Steve Bannon, the controversial advisor to Trump, has kept the markets on edge. Special adviser Carl Icahn left the administration also, supposedly owing to a critical article of the president.
Regarding the Ibex technically, the index continues mostly flat despite reigning back on the 24 April level of 10,377 points. Even still, on Friday it closed once again around that level and it appears that it has little appetite for higher movement. “Since the Ibex 35 hit annual highs at 11,185 points, we can see a consolidation inside the lateral-low movement,” said Bolsmanía technical analyst José María Rodríguez.
JACKSON HOLE
One of the main events of this week will be the symposium organised by the Federal Reserve in Jackson Hole, Wyoming which begins on Thursday. As is known, ECB president Mario Draghi will attend the meeting after years of avoiding it. “Many investors hope that he will make the most of the conference to bring forward how and when to withdraw the monetary stimulus in the eurozone through a purchasing programme,” Link Securities analysts said in their daily report.
Fed president Janet Yellen will speak at the meeting on Friday. In her case, it’s expected that she will speak more about monetary policy and lead expectation about a further interest rate rise this year.
With respect to the macro data of the week, the ZEW of Germany for August will come out on Wednesday. In addition, there will be several PMI reports in European economies and in the US.
