Draghi and Trump encourage markets: Europe closes with increases of more than 1%

The Ibex 35, has gone from falling 0.75% in the first bars to closing with a rise of 1.19% (9.240 points) ending with two days of consecutive falls. The rest of European stocks have also risen (Cac: + 2.2%, Dax: + 2.1%, Ftse 100: + 1.3%, Ftse Mib: + 2.4%).

The president of the ECB has once again worked his magic this morning. He was expected to repeat his 'dovish' speech on July 6, on the occasion of the ECB rate meeting, and even intensified it by pointing to that "considerable margin of maneuver" of the asset purchase program. Today Peter Praet, Philip Lane, Mark Carney and Stanley Fischer also speak at Sintra. A very tight and complete agenda that undoubtedly keeps the market in suspense. In addition, the Fed's two-day meeting begins on Tuesday. The conclusions will be known tomorrow and the market expects Jerome Powell to leave the door open for a rate cut in July.

"With all the attention put on the Federal Reserve, it's easy to forget that the European Central Bank is facing an even bigger problem: the departure of ECB President Mario Draghi at the end of October and the European economy staggering, Today's speech in Sintra could offer more clues as to how far the ECB can consider monetary easing, beyond the September TLTRO program, "said Michael Hewson, chief analyst at CMC Markets in London, in a comment before the opening of the market.

Trump has once again encouraged the markets with a tweet. Anticipating that he will meet Xi Jinping at the G20 summit in Japan next week.

In the Ibex 35, 7 stocks closed with falls, with Bankinter and Bankia being the most punished in the session and falling 2.1% and 1.9% respectively. On the opposite side, Arcelormittal has led the rises by increasing 6% along with Enagas, which has increased in value by 3.2%.

This Tuesday important macro data was published as the ZEW of investor confidence in Germany in June remained at -21.1 against the estimate of -5.7. Likewise, the CPI for the Euro Zone in May moderated to 1.2%. And at the business level, Indra has continued to fall (-0.8%) after leaving 7% on Monday for the next purchase of ITP. In other news there is still talk of Deutsche Bank and its decision to create a bad bank. For its part, the German chip maker Infineon has raised 1.5bn euros in an accelerated capital increase for the acquisition of Cypress Semiconductor.

In turn, the market has continued to heed the growing tensions between the US and Iran after the United States announced the shipment of 1,000 soldiers to the Middle East due to concerns over the threat posed by Iran. Fears of a confrontation between Iran and the US have increased since last Thursday, when two oil tankers were attacked in the Sea of ​​Oman.

Back in Europe, the remaining six candidates from the Conservative Party to replace British Prime Minister Theresa May will face a second round of secret balloting on Tuesday, with Boris Johnson as a clear favorite despite refusing to participate in the TV debate on Sunday.

Finally, the big news is the new cryptocurrency that Facebook will launch, which they have surprisingly called Libra and will be released in 2020. While the bitcoin flies above $ 9,000 driven by this 'crypto'.

TECHNICAL ANALYSIS

Very interesting session that the Ibex leaves us this Tuesday. "We have a clear rising session." We have fallen by 0.75% during the first hours of the session to close with increases of over 1%, "drawing what is known as a bullish envelope". A figure that usually brings a rebound in the short term with it, explains José María Rodríguez, technical analyst at Bolsamanía.com

But now "the most important thing is to check if we will be able to close in the short term over the resistance of the 9.335 points". To do so, and with the permission of the weekly bearish hole of 9,410 points, "it can be said that our index would be giving shape to an inverted 'head and shoulders', figure of bullish implications that if fulfilled should throw us above the annual highs (9,588), "he adds.

However, "European futures are clearly higher than our selective's ones, by specifically 2%, and we already have the Dax and Euro Stoxx 50 futures on the threshold of the resistances at the annual highs", the highs from the start of May. This weakness of our Ibex " that compared to our neighbors, is suffering the weakness that the banking sector continues to show in general terms". We have too much specific weight in the banks and these "are weighing us down in recent weeks" concludes the expert.