Ibex (1.06%) and Europe rebound after Brussels negative response to Italian budgets

Rebound of the Ibex 35 this Wednesday, closing with a rise of 1.04%, in the same line as the main European parks. The European markets have received well that the European Commission (EC) has complied with what was foreseen by rejecting the Italian Budget and opening a sanctioning file to the country.

Colonial led the rebound in the Madrid Stock Exchange, closing with a rise of 3.01%, followed by CIE Automotive (2.71%) and Inditex (2.49%). The most bearish value was Endesa (-2.64%), which this morning announced that it will cut its 'pay out' to 80% of net ordinary profit attributed in 2021. It was followed by Naturgy (-1.22%) and DIA, that today closed with (-1.13%).

The banking sector quoted in green led by Santander (1.79%), which announced today that it sells 2.3% of OHL after its unsuccessful bet on the construction company.

In the Continuous Market, MásMóvil shot up after buying the virtual operator Lebara for 55 million and closed above 6.91%. The European platform for multi-brand restaurants, food and digital services, AmRest, owner of the popular La Tagliatella franchise among others, has not set a price on the day of its release.

INCREASES WITHOUT IMPLICATIONS

The analyst of Bolsamanía, José María Rodríguez, downplayed the increases on Wednesday and warned that "the first sign of strength in the short term is now to cancel, or what is the same to close, the gap this Tuesday (9,006 points) ".

The minimums of this Tuesday, which are the current support, according to the analyst, correspond to an adjustment of 61.8% of the last rebound. "The most interesting part of the session is that the big European stock markets are bouncing from the support zone they present at the October lows. And that's where the key is, "said Rodriguez.

For the analyst, "any potential figure of return (of upward implications) these minimums must be respected". From now on, the most difficult thing remains: "To jump over the resistance they have in the highs of early November", explains Rodríguez.

In short, in the words of the analyst of Bolsamanía "we have the lows of October as a support to be respected at all times and the highs of the beginning of this month to, at least, build a small figure of back of bullish implications for all the exchanges of the Old Continent ".

BREXIT AND WALL STREET

Along with Italy there are more uncertainties along the way that make it difficult to predict good behavior in the short-term. Although Wall Street is also bouncing today, the United States once again experienced a session of significant declines, while the technology companies are still not going through their best moment and amid the uncertainty generated by the trade tensions between China and the United States.

All this in an atypical week because it is worth remembering that 'Thanksgiving' is celebrated on Thursday in the United States and Wall Street will remain closed. On Friday, during 'Black Friday', the stocks will open there only during half a session.

To all this Brexit tensions are added. The experts at Danske Bank acknowledge that market sentiment remains weak amid the uncertainties of Brexit, and stress that Italy returns to the spotlight today with this decision of the European Commission.

Oanda analysts also recognize that market sentiment remains weak. "Another worrying start to the week in the markets with a drop in investor sentiment. (...) With the aggressive trade agenda of Trump, Brexit and Italy, and another series of headwinds, it's hard to predict how much. things are going to get worse, "says Craig Erlam. "We are already close to the October lows and correction territory, even near the bear market, in some cases as in the Dax," he adds.