The Ibex advances towards 7,200 driven by talks between China and the US
Multiple news about vaccines is also supporting markets
The Ibex and the rest of the European stock markets continue to rise this Tuesday (Ibex: + 0.9%. 7,173 points) after the strong rises of the last session that led the Spanish selective to close above 7,100 points. Today investors are watching data from Germany (GDP has registered a record fall of 9.7% in the second quarter, although with a slight improvement compared to Destatis' previous estimate; IFO is also published) and what has to do with the US and China, after the latest more optimistic news. In addition, the multiple information related to vaccines is also supporting the indexes.
IBEX 35
11.656,600
-
0,39%44,90
- Max: 11.674,00
- Min: 11.520,90
- Volume: -
- MM 200 : 11.125,61
The US Trade Representative, Robert Lighthizer, and the Secretary of the Treasury, Steven Mnuchin, have had a telephone conversation with the Chinese Vice Premier, Liu He, to "discuss the implementation of the historic 'phase 1' of the trade agreement between the US and China, "according to a statement from the office of the US Trade Representative (USTR) published Monday night. The conversation has also been confirmed by the Chinese state media agency Xinhua.
According to the USTR, "both parties see progress and are committed to taking the necessary steps to ensure the success of the agreement."
This comes after, progress of the negotiations between the two powers was called into question last weekend, as the scheduled meetings were postponed and a new date was not set for them, and after Donald Trump declared that he did not want to talk about this matter for the moment.
There is also news about the potential vaccines - Trump Wants to Authorize Oxford and AstraZeneca Vaccine Before the Election; Moderna has said it will supply 80 million doses of its vaccine to the European Union - they are also helping the markets.
"Positive news about potential vaccines and treatments for Covid-19 opens the door wide to a rotating carousel of stocks," said Stephen Innes, AxiCorp's head of global markets strategy.
"If the symptoms of infection could become as mild as a cough or a runny nose during the flu, the economy could return to normal," he adds.
Asia ended with a dominance of the green numbers this morning (especially well the Nikkei did) after yesterday's rises in the US, where the S&P hit a new all-time high. Apple also hit an all-time high, dragging with it to other tech companies.
Finally, it is worth highlighting that the markets are still waiting for the speech by Fed Chairman Jerome Powell, who will speak in the framework of the Jackson Hole central bankers summit that takes place between Thursday and Friday. Powell is expected to outline what could be the most active effort by the central bank to stimulate inflation to a healthy level, while laying out the keys to the upcoming changes to the Fed's monetary policy framework.
