The Ibex, awaits the decision from the ECB, Johnson and Von der Leyen, Hungary and Poland
The European summit focused on blocking budgets kicks off
If something is characterizing the Ibex this week, it is the calm it is showing while waiting for what happens with the big issue that has investors worried, Brexit. We are still awaiting on the decision by Boris Johnson, British Prime Minister, and Ursula von der Leyen, President of the European Commission (EC), who had dinner last night and gave themselves until Sunday to reach an agreement and avoid an exit with no-deal.
IBEX 35
11.473,900
-
0,33%38,20
- Max: 11.485,70
- Min: 11.446,20
- Volume: -
- MM 200 : 11.299,24
No one rules out any hypothesis, while experts acknowledge that optimism and pessimism on this issue coexist in equal parts. What is agreed is that, if in the end there is a Brexit without consensus, it will be bad for both parties and the stock markets will fall.
Along with Brexit, there are two other big issues. First of all, this Thursday and Friday the European summit will be held in which it will try to solve the problem of the blockade of Poland and Hungary on European budgets. The latest news indicates that Germany has negotiated a solution to deal with this situation and it is even said that both countries are opening up to lift the veto.
Of course, the meeting of the types of the European Central Bank (ECB) is another of the topics of this Thursday. The agency is expected to "recalibrate its monetary policy instruments", using both the bond purchase program and liquidity instruments (TLTRO). In addition, it will also update your forecasts.
All in all, European futures are down 0.25% on average and US futures are trading flat, with a mixed sign. This, after yesterday Wall Street ended in red, as Asia has done this morning. Across the Atlantic, seventeen states in which Donald Trump prevailed in the elections told the Supreme Court on Wednesday that they support the attempt by Texas Attorney General Ken Paxton to file a lawsuit that could effectively reverse the projected victory of the Electoral College of President-elect Joe Biden.
As for the other aspects of the day's agenda, today the CPI for November in the United States is also published.
Finally, regarding the technical evolution of the Ibex, the selective maintains the upward bias. "In the short term, we continue to think about an extension of the gains to the level of 8,375 points, maximum of the last bearish gap that was left in the month of March. We need to stay attentive, since if it manages to exceed these prices we could end up seeing an extension of the gains up to the level of 8,683 points, maximum of the bearish gap drawn two days before the 8,375 points, "says César Nuez, analyst at Bolsamanía and head of Trader Watch.
