The Ibex (+ 0.9%) closes with daily highs and at the critical level of 9,040 points

The Ibex 35 has closed at highs of the day and just at the critical level of 9,040 points (+ 0.92%, 9,044.10 points), at the start of a week in which China and the US will be absolute protagonists. At the end of the week (Thursday and Friday) the representatives of both economic powers meet in a meeting from which the market expects concessions on trade between the parties. So far, the Asian indexes have ended in red this morning. The latest news suggests that China is not willing to negotiate a series of aspects, such as government subsidies or industrial policy, considered essential for the US.

On a corporate level, Duro Felguera has risen 14% in the Continuous Market due to Indra's interest in buying its Defense business, Epicom. In negative, Vocento has fallen by 3% despite the fact that García Paramés, manager of Cobas AM, has again raised its participation to 5% from 3%.

Within the Ibex, MásMóvil (+ 3.25%) has been the most bullish value and is already close to its historical highs. The agreement to share 5G networks with Orange has triggered its price in the last sessions. Other bullish values ​​have been ArcelorMittal (+ 3.21%) and IAG (+ 3.11%).

Internationally, 'Financial Times' reported Sunday that HSBC plans to cut up to 10,000 jobs in an attempt to reduce costs.

In other markets, Brent oil picks up 2%, to almost $ 60, after doubts have been raised about Iraq's supply capacity in the face of recent protests in the country. In addition, the euro rises in value 0.17%, up to $ 1,0995. In Spain, the risk premium falls slightly to 72 points, while the yield of the 10-year bond yields to 0.13%.

ECONOMIC, EDF AND BREXIT

Stock markets suffered last week from the publication of a series of disappointing macro data on both sides of the Atlantic. Although in the end, the US employment report for September, published on Friday, served to save the situation.

"In general it was a good employment report, which led operators to buy a new stock. The announcement eliminated part of the fear about the health of the US economy," explains David Madden, an analyst at CMC Markets in London. Experts indicate that there are pockets of weakness in the US economy, but also pockets of strength. In any case, the idea persists that the Fed will cut rates at the end of the month because of that weakness.

Another relevant issue this week will be the development of the Brexit situation. The French president, Emmanuel Macron, has said that the negotiations must conclude at the end of this week, while Boris Johnson reiterated this Sunday his intention for the United Kingdom to leave the EU on October 31.

In Portugal, the Socialist Party has won the elections, as expected, but has not achieved an absolute majority and the elections have been characterized by the very high abstention of almost 50%.

These days will also see the latest report of the minutes of the last meeting of the Fed (Wednesday) and the ECB (Thursday), which will offer more information on the future monetary policy that both central banks plan to adopt.

IBEX TECHNICAL ANALYSIS 35

"Last Thursday we commented that there were conditions to bet on a rebound, given that the fall from Tuesday's highs to Wednesday's lows had been significant: almost -5%. We added that the daily overselling gave extreme readings and that, in addition, the Ibex had corrected 50% of the whole increase since the minimum of August, "says José María Rodríguez, analyst at Bolsamanía.

"After the rises this Friday and today, we have before the first resistance zone, the area of ​​9,040-9,050 points. And above this level we find the next one at 9,166 points (the bearish hollow of the past Wednesday.) What I like about the current movement is that it is produced from an interesting support area and with the oscillators at the moment (like the stochastic) about to cross upwards, "adds this expert.

"But it is too early to call it, because in most cases (but not always) the prices usually return to the minimum of the last fall (8,850) to check again the strength of the support. Then from there we can try to build some kind of return figure of bullish implications. But if it is lost, another new bearish whip would be confirmed. By correlation, we will also look at the two great European futures (Dax and Euro Stoxx 50) , since these have left us important supports in the minimums of last Thursday, where we have impeccable 'hammers' ", concludes Rodríguez.