The Ibex takes a breather after last week's rally and gives up positions
Investors are pending this possible merger between Gilead and AstraZeneca today
The Ibex and the rest of the European stock markets started the week with falls (Ibex: -0.85%. 7,805 points) after the strong increases of last week, of 11% in the case of the Spanish index. The support of the ECB and the measures announced by Germany were effective, and the squares of the Old Continent moved forward willingly. The rally was reaffirmed by the blow at the US on Friday. The world's largest economy unexpectedly created 2.5 million jobs in May compared to the destruction of 7.5 million jobs anticipated by experts. The country's unemployment rate fell to 13.7%, from 14.7% and was well below the 19.8% projected by analysts.
IBEX 35
11.467,300
-
0,24%27,40
- Max: 11.489,20
- Min: 11.310,50
- Volume: -
- MM 200 : 11.289,95
This Monday, talks about a possible merger of two pharmaceutical giants, AstraZeneca and Gilead, which are fighting the coronavirus, and the agreement between the OPEC + countries to extend the historic cut in production by a month, will weigh positively. However, analysts say massive protests around the world against the murder of George Floyd and the risk of a renewed increase in Covid-19 cases may cool the mood earlier in the week.
"The news that the pharmaceutical giant AstraZeneca made a preliminary approach to Gilead, which has been developing Remdesivir - the only approved treatment in the United States against Covid-19-, should increase investors' risk appetite. Although the talks between the two companies are not yet formal, this possibility will boost M&A activity that has been severely affected by the coronavirus crisis, "says Ipek Ozkardeskaya, analyst at Swissquote Bank.
Asian indices have started the week with gains. Chinese exports in May fell less than expected (-3.3% vs. -7.0% expected) while Japan's GDP contracted in the first quarter of 0.6% vs. -0.5% forecast and -0.9% in the previous quarter.
Regarding oil, this weekend OPEC + decided to extend the record production cuts of 9.7 million barrels per day during the month of July. Brent and Wets Texas are trading above $ 40 on Monday. Analysts say, "Crude investors are likely to be looking for buying opportunities to drive the oil rally toward the 200-day moving average ($ 46.40)."
