The Ibex extends the falls, although "it still does not show signs of weakness"

The Ibex extends this Wednesday yesrerday's falls (-0.4%. 7,900 points), when it fell 0.6%, while the news about the growing cases of Covid-19 takes over the markets.

"After the rally supported by good news about vaccines we saw on Monday, European markets had a more temperate behavior on Tuesday, as virus cases continue to rise while macro data in the US have been disappointing," they explain CMC Markets experts in their daily report.

Slowly, they add, it is becoming clear that the damage from subdued consumer activity is beginning to show itself in American consumer spending patterns after October retail sales rose only 0.3%, slightly lower than expected and the weakest benchmark since April.

"As coronavirus cases continue to rise sharply in the United States and several states are closing in on colder weather and rising infections, it is becoming increasingly clear that the next two months are likely to be even worse for women. American companies, in particular because another fiscal stimulus plan still seems very far away, "they add from CMC.

This Wednesday investors are attentive to the publication of the CPI in the United Kingdom (rises 0.7%) and the European Union (EU). Experts explain that the references will be an unwanted reminder of the failure of the Bank of England and the European Central Bank (ECB) to meet their mandates of a 2% inflation target.

For the rest, Brexit continues to be the protagonist. The pound has been on a hot streak in recent days helped by news that the EU and the UK could reach a deal as soon as next week. Even so, this still seems unlikely.

Regarding the technical aspect of the Ibex, despite yesterday's falls, it remains close to 8,000 points and "still does not give any sign of weakness that would suggest a correction," the experts at Bolsamanía underline. "For this we should wait for a close below 7,688 points. If it managed to exceed 8,000 points, we could end up seeing an extension of the gains to the level of 8,375 points," they explain.