The Ibex opens a week of ECB, European Council and results with strong increases

The Ibex opens the week with increases of over 1% (7,405 points) after dropping 1% last week and amid hopeful news about treatments against Covid-19. A study shows that remdesivir, the drug from Gilead Sciences, reduces the virus death rate by 62%. BioNTech and Pfizer are working on a potential vaccine, and late last week BioNTech announced that their drug may be approved by the Food and Drug Administration in December.

The next days will be marked by the rate meeting of the European Central Bank (ECB) on Thursday and by the extraordinary European Council on Friday and Saturday, which will try to reach an agreement on the economic recovery plan after the pandemic of coronavirus.

All in all, the European stock markets have started the week with notable increases. This, despite the latest data related to the Covid-19. The US has reported more than 60,000 new cases daily for three consecutive days, bringing the national total to more than 3 million cases, according to Johns Hopkins University. The WHO (World Health Organization) reported a record daily increase in coronavirus cases worldwide on Sunday.

The earnings season begins this week with the accounts of the big banks across the Atlantic. JP Morgan, Citigroup and Well Fargo will report their numbers on Tuesday. Pepsi will announce theirs this Monday before the opening.

In Spain, this Monday is news the result of the elections in the Basque Country and Galicia, which is expected to have little or no impact on the stock market. As for the rest, Pedro Sánchez today called the coronavirus monitoring committee urgently due to the numerous outbreaks across the country. In addition, the Prime Minister, Pedro Sánchez, started a mini-tour this Monday in The Hague to bring closer positions on the European fund. Spain insists that the instrument is necessary for the entire EU and warns that it will not accept 'troikas' to supervise the funds.

In another order of things, oil starts the week with falls of 0.5% on average pending the virtual meeting of OPEC + on the 15th. The group of large oil producers could announce plans to start reducing the historical cuts to production.

Finally, note that the macro data calendar is very quiet this Monday. Throughout the week, major references such as industrial production in the eurozone, the US CPI, the ZEW survey in Germany or the eurozone CPI will be known.