The Ibex and the rest of Europe open week with strong increases following the Asian rally

The latest references on services from China and Europe point to a continuation of the upturn in activity. The June Caixin survey of Chinese services was 58.4, the highest in the last ten years. "It is particularly positive that the Spanish PMI has joined the French PMI to re-enter expansion territory. In general, with a panorama of strengthening domestic demand throughout the euro area, and in the absence of virus outbreaks similar to those from the US, European PMIs should continue to rise in the coming months, "experts at Danske Bank predict.

Technically, Bolsamanía analysts point out that everything seems to indicate that the Ibex has confirmed the turn from 7,062 points and now they expect an attack at 7,663 points, the next key level. "It would be a good sign to exceed this level of supply, since it would make us think of an extension of profits to the level of 8,000 points, prices where the average of 200 sessions is located," they point out.

Looking at the latest pandemic data, according to the WHO, more than 212,000 new cases of Covid-19 were recorded on July 4, a daily record. The United States, Brazil, and India contributed the most to this count. The US reading on Saturday was over 53,000, down from Friday's level of over 57,000. Some heavily affected US states, such as Florida, are experiencing a drop in the rate of new cases, which is probably due to a pause in the reopening of their economy. As of this Sunday, 34 states saw an increase in new cases in the week.

"The health situation in the US is likely to have deteriorated further as Americans enjoyed their long weekend," said David Madden, analysts at CMC Markets in London. Remember that you closed Wall Street on Independence Day on Friday. Today it returns to operate normally.

Otherwise, it is worth noting two comments to start the week. The pandemic will lead to a permanent change in European monetary policy, by generating the most extensive policies ever enacted and by forcing the creation of a joint fiscal plan, said Francois Villeroy de Galhau of the European Central Bank. ECB President Christine Lagarde, meanwhile, has stated that Europe will face two years of downward pressure on prices, but that the virus will accelerate existing changes in the economy towards digitization, automation, supply chains shorter and greener technology that will ultimately aid recovery. At the same time, there is speculation in the market with a division within the ECB about the bank's bond purchase program.