The Ibex (+ 1.1%) maintains the rebound thanks to the support of Repsol and Endesa

The Ibex and the rest of the European stock markets have rebounded this Tuesday, although the majority have registered rises close to 2% while the Ibex went flat and closed with a rise of 1.1 %%. The Spanish selective has been supported by Repsol (+ 13.20%) and Endesa (3.5%) (after publishing results). Outside of our country, BNP Paribas results stood out (the benefit due to the impact of Covid-19 reduces by 33%).

One of the main news of the day is that the European Central Bank (ECB) has called an emergency meeting this afternoon to assess the decision of the German Constitutional Court, which has given its verdict on the public debt purchase program launched by the ECB in 2015 (PSPP).

In its verdict, the German Constitutional Court has partially rejected the claim presented almost half a decade ago by a group of German academics and businessmen against the public debt purchase program, although it considers that the entity has abused its powers and that said program has disproportionate scope. The Court has required the issuing institute of the eurozone to introduce "within a maximum period of three months" the necessary changes to justify the proportionality of the objectives of its program.

Despite the fact that in its judgment the Karlsruhe Court expressly left out "the financial assistance measures adopted by the EU and the ECB in the context of the coronavirus crisis", such as the PEPP program, the conditions required of the ECB for the Bundesbank's involvement they can be seen as a limitation of the central bank's firepower to tackle the Covid-19 crisis.

As for the macro data of the day, Spain's unemployment rate rose in April by 282,891 people, its biggest rise in this month in history. Today the ISM non-manufacturing is also published on the other side of the Atlantic. We recall that tomorrow the PMI services in Europe will be known and that they are expected to be "catastrophic".

The rebound in the price of oil contributed in the past session to the recovery on Wall Street, according to experts, and that rebound continues on Tuesday. The Brent barrel is trading at $ 28.31 and the West Texas at $ 21.65.

"The rebound in the price of crude oil was largely driven by expectations of a rebound in demand as governments continue to prepare for the gradual easing of quarantine. Italy and Spain have relaxed some restrictions, while the UK government Kingdom has outlined its latest guidelines of what is required for a limited return to business, "explains Michael Hewson, chief analyst at CMC Markets in London.

Regarding tensions between China and the US over the Donald Trump Administration's accusations of the Asian giant, which blames as the cause of the virus, China has replied that these accusations are a "strategy" to cover up Trump's "incompetence" . Be that as it may, the market is much calmer when both countries are in tune. Such a direct confrontation predicts that both sides will resume the now forgotten trade war.

Otherwise, the Reserve Bank of Australia (RBA) has kept rates unchanged at 0.25%. The agency has seen some better in financial markets in the past month, with credit markets open to more companies and bond yields returning to very low levels.

TECHNICAL ANALYSIS

"Tomorrow will be a month ago of the bullish session in which the Ibex left us a gap (support) at 6,580 points. The famous gap that we have referred to so many times in recent weeks and which acts as a support for the moment" , explains José María Rodríguez, technical analyst at Bolsamania.

"'Gap' that was filled but has not closed yet. Only now we have a new resistance in the bearish hole this Monday at 6,923 points. And above we have the highs for April, the highs for the rebound at 7,210 points. In short, there are more and more resistances that we have above and more and more approaches to support levels, "he explains.

"This does not lead to much trust. Having said this and as we continue to remind everyone over and over again, the most immediate support, the bullish gap to which we have previously referred, has not yet been drilled. As long as it is not closed, in the worst of cases, the trading bias is lateral within a corrective phase of a greater degree "the expert concludes.