The Ibex opens month with strong increases due to the data in China and waiting for the PMI

The Ibex starts the month of June with strong increases (+ 1.8%, 7,224 points) after Donald Trump's words last Friday were not as bad as expected and there was good macro data in China. In Spain, MásMóvil shoots up more than 20% after the friendly takeover bid launched by Providence, KKR and Cinven at 22.50 euros per share.

"Investors were too fearful, but Donald's appearance was not so harsh. The American leader went into more detail about how he is going to remove Hong Kong's special status and treat the region in the same way as mainland China." says David Madden, an expert at CMC Markets in London.

Asia ended the day on Monday positive after Trump was less hard than expected and after the favorable data known in the last hours. China's manufacturing PMI for May was released over the weekend, reading at 50.6, slightly below the 50.8 posted in April. The industry has experienced positive growth for three months, although the rate of expansion has cooled. The non-manufacturing PMI reading was 53.6, its highest level since the pandemic began. The China Caixin Manufacturing Survey was released this morning, reading 50.7, while the consensus estimate was 49.6. The previous reading was 49.4.

This Monday the manufacturing PMIs for May are published in Europe and the US.

Going back to today on the other side of the Atlantic, investors are also very aware of the violent riots that have occurred this weekend. Protests erupted from Los Angeles to New York after George Floyd, a black man, died last Monday after a confrontation with police in Minneapolis in which an officer, Derek Chauvin, was recorded digging his knee into Floyd's neck. until the handcuffed man who passed out and later died.

Experts say clashes between civilians and law enforcement, including fires near the White House, are not expected to have long-term economic repercussions, but stress that the protests come as many retailers and businesses start to raise their heads after the pandemic, and that now they are involved in the looting and vandalism that have occurred this weekend.

"The direct economic impact of the protests is small, at least so far," says Mark Zandi, chief economist at Moody's Analytics. However, he adds that the short-term harm to consumers and the business community may be more substantial.

Finally, remember that this Thursday there is a meeting of the European Central Bank (ECB). It is, without a doubt, the great event of the week.