Europe rebounds awaiting updates from the Fed and Italy, the Ibex recovers the 8,700 points

The European stock exchanges have closed with strong increases although the Ibex has been the most moderate and has risen 0.97% with which it has recovered the 8,700 points that it lost yesterday. Meanwhile Europe has risen over 1% (CAC: + 1.5%, DAX: + 1.2%, FTSE: + 1%, FTSE MIB: + 1.6%), despite the uncertainty caused by the resignation of Giuseppe Conte. Investors have been encouraged by new talks about the possible merger of Fiat and Renault, which encourages the automobile sector, and look forward to what happens this week with central banks. Today the minutes of the last meeting of the Federal Reserve (Fed) are known.

In the Ibex 35 the value that has risen most has been Mediaset. The group's shares have jumped 5.88% despite the fact that Vivendi has announced its intention to vote 'no' on the merger with the Italian parent company. Inditex increases (+ 3%) also stand out in a day in which the vast majority of values ​​have closed positive.

On the other hand, the shares of the 'old' Pescanovase have shot up 12% and have led the progress of the Spanish stock market after announcing their intention to resume their commercial activity in South America.

Italy has held much of the attention today. Especially since the Milan stock market seems to have shrugged off what happened on Tuesday. The market already seems accustomed to the political crisis of the country, although the truth is that threats are building up.

After the departure of Conte, who in his speech before the Senate attacked Matteo Salvini and accused him of putting the country at risk with his no-confidence vote, now everything is in the hands of the President of the Italian Republic, Sergio Mattarella, who has initiated contacts to see if there is a possibility of forming a new government (the 5 Star Movement is negotiating with the Democratic Party) or, otherwise, he must call new elections. This last option is the favourite of Salvini, who broke the coalition that his party, the Northern League, maintained with the M5S to take advantage of the pull of his own in the polls (they give him up to 40% of the votes).

The experts, in fact, have already given the alarm: "Although there was no great expectation that the populist government would carry out the reforms that the Italian economy needs, the current political scenario may slow down the country's economic growth even more. even lead him to a new recession, "they point out from Link Securities.

However, Italy is not affecting the operation. And there is great expectation with the Fed's minutes, especially to see if they reveal an impending easing of monetary policy, after US President Donald Trump has told Jerome Powell directly how much he has to lower the rates of Interest: 100 basis points. Remember, in addition, that this Thursday will be the European Central Bank (ECB) that makes known the minutes of its last meeting, and also this Thursday begins in Wyoming the Jackson Hole symposium, in which Powell (Friday) will speak and where he could give some clue about the next decisions of the Fed.

In addition, Brexit also remains on the radar. Uncertainty about the United Kingdom's exit from the European Union has increased after British Prime Minister Boris Johnson has sent a letter to Brussels to press the agreement and try to change the terms signed by his predecessor in office, Theresa May, regarding the border with Ireland. Although the president of the European Council, Donald Tusk, refused to negotiate this point again and gave a strong reprimand to the 'first'. This Wednesday Johnson will meet with Chancellor Angela Merkel, and this Thursday he will meet with Frenchman Emmanuel Macron. It will seek flexibility from EU leaders in relation to the Irish containment barrier.

The doubts that hit the European and American markets yesterday have also been noted on Wednesday in Asian exchanges, which have closed with falls due to fear of recession. We recall that Donald Trump has admitted for the first time that tariffs on Chinese imports can have a negative impact on the US economy in the short term, although he has pointed out that his "hard line" is necessary and will be worthwhile in the long term. Nevertheless he intends to maintain his trade war with Beijing despite threats of recession.

On the other hand, note that on Wednesday Germany has auctioned 30-year bonds at 0%. It is the first time that the Germanic country does so, so the expectation was remarkable, especially when investors have moved in recent days to the fixed income market in search of refuge values ​​in the face of doubts that lurk the market. In the end, it has disappointed to place only 824m against the expected 2bn, to a coupon of -0.11%.