The Ibex closes almost flat after the terrible unemployment data in Spain and the US
Both countries have recorded the worst unemployment figures in their history
The Ibex 35 has dropped by 0.08%, to 6,574.10 points, after the lousy unemployment data in the US and after this morning a terrible unemployment figure for Spain was known, with 302,365 more unemployed, the worst month in history. These references are just one example of what is to come due to the impact of the coronavirus crisis on the economy. Not surprisingly, Spain is one of the countries hardest hit by this situation, with the highest number of deaths only behind the US and Italy.
IBEX 35
11.468,400
-
0,29%32,70
- Max: 11.485,70
- Min: 11.446,20
- Volume: -
- MM 200 : 11.294,32
Today the weekly unemployment claims have been published in the US. Last week this reference was very bad, increasing by 3 million people in one week. Finally, the data has been even worse than expected and has doubled to 6.6 million.
Market sentiment remains "tense," says Madden. Investors remain very uneasy as there seems to be no sign to the end of the pandemic in many countries. The US expects up to 240,000 deaths from this disease while, in Europe, Italy will maintain its blockade until April 13, and Germany has extended its block until April 19.
"This points to more financial pain on the horizon," they add from CMC Markets. Thus, not only they, but all experts warn that the more this crisis spreads over time, the deeper the economic recession, which could even lead to depression.
STRONG REBOUND FROM OIL
The oil market is still under tremendous pressure, although this Thursday Brent crude oil has registered a rebound of 15% (it has shot up 40%) due to speculation about a possible meeting between three (USA-Saudi Arabia-Russia) to try to stop the collapse of prices.
Trump has anticipated that Russia and Saudi Arabia have agreed to a production cut of up to 10 million barrels a day, which could even go as high as 15 million, according to comments to CNBC. However, the Kremlin has denied that President Putin has spoken to the Saudi crown prince and that a new agreement has been reached to cut production, a reason that explains the subsequent correction of black gold after the initial rise.
Regarding the Ibex, the most bearish values have been Amadeus (-3%), Acciona (-2.8%) and Inditex (-2.8%), while the most bullish have been Repsol (+ 6%) and Cellnex (+ 4%). In other markets, the euro depreciates 0.8% and changes to $ 1.0867 and the yield on the Spanish 10-year bond rebounds to 0.72%, while the Spanish risk premium rises to 116 points.
TECHNICAL ANALYSIS
"The interesting thing about this Thursday is that we closed far from the lows of the session, where we have seen a drop of 2.3%. In the end, we have respected the small support we had at 6,500 points and closed above "explains José María Rodríguez, technical analyst at Bolsamania.
"Otherwise, everything remains the same. Although very slowly and slowly the possibilities of continuity in the rebound remain intact. In fact, at this moment we are halfway between the key support of 5,800 points and the resistance of the 7,435 points (the last bearish gap). And above 8,000 points (50% retracement), "adds this expert.
"We will have to be attentive to the closing of the weekly candle this Friday, but the truth is that everything remains the same as it was a week and two ago. We are still in the rebound phase as long as the price does not say otherwise," concludes Rodríguez.
