The Ibex rises cautiously while still watching Brexit

European indices are listed with moderate earningsn and moderate movements at these hours (Ibex: + 0.2%; Cac: -0.05%; Dax: + 0.35%; Ftse 100: -0.3%). Investors opt for caution while remaining absolutely aware of what happened with Brexit. According to Bloomberg, after the optimism of the last few hours, now it seems that at last, negotiations have stagnated. Analysts remain very skeptical, among other things because the deadline for a pact is there (October 19) and before that date it should be ratified by the British Parliament, something complicated in view of everything this spring.

Thus, most experts continue to bet on a delay because finally Johnson will be forced to request an extension, and also call for early elections. However, they do not rule out that the Prime Minister will have a card up his sleeve and try to push his Brexit without agreement without going through Parliament. However, the British minister for Brexit has assured that Johnson will abide by the law and ask for a delay.

Here in Spain, protests in Catalonia make the news after the sentence of the 'procés',it has even made international media. After the riots last night, the impression that anything may occur in the Autonomous Community and the Government is unable to control the situation is a general feeling.

The Executive is trying to carry out an international campaign, with multiple interviews of its ministers to different media, to try to counter-attack the campaign that the Generalitat is rolling out. The image that Spain is giving abroad is unfortunate and trying to mitigate this is essential to avoid, among other things, that it can affect more from an economic point of view.

Today we also talk about the economic forecasts that the International Monetary Fund (IMF) published last day, which also said that central banks have "limited ammunition" to fight the recession and that the stimuli of central banks can only compensate part of the damage caused by protectionism. Experts underline that, in general, their tone was pessimistic, delving into the important challenges for the world economy, pointing out as the main negative factors the commercial war, geopolitical tensions, the absence of agreement on Brexit and the persistence of weak macro data .

In the chapter of these geopolitical tensions, the problems of China with Hong Kong are added today. China has announced that it will take "strong reprisals" after the approval by the US House of Representatives of the Law of Democracy and Human Rights of Hong Kong, which could lead to sanctions for those who had undermined the freedoms of Hong Kong.

Regarding the macro data published this day, inflation in the United Kingdom will be at the limits of 2016 to continue at 1.7% in September. In the Euro Zone, the CPI rises 0.8% year-on-year compared to the expected 0.9% and the previous 1.0%. At the business level, ASOS shoots up despite the fact that the annual profit has fallen by 68%.