The end of the short-term ban weighs more than the 'vaccine effect' and the Ibex yields 2.51%

Every the ban on short positions has been lifted both in Spain and in five other European markets. This fact has led to the falls of the session.

The sharp rises yesterday-and this morning in Asia- have been motivated, among other things, by the news about the American pharmaceutical company Moderna, which has announced positive results of its Covid-19 vaccine. There is nothing that encourages markets more than the possible success of a vaccine, and a sample of it was seen again yesterday. However, the impact of this news has vanished today; volatility prevails and the indices return to negative terrain.

Investors are also aware of the announcement, which was made at the close of Monday, that France and Germany have presented a fund with subsidies of 500,000 million euros to alleviate the effects of the pandemic in Europe. The fund is conditional on countries benefiting from reducing the deficit and making structural reforms. Both countries have explained that their objective is to approve this fund "as soon as possible," but added that it will be based "on a clear commitment by the countries to follow and implement sound policies and an ambitious reform agenda."

In another order of things, US President Donald Trump has threatened to permanently cut US funding to the WHO (World Health Organization) in 30 days. It is already known that Trump is not happy with how the body has managed this entire crisis.

The oil market experienced a significant recovery on Monday. Brent is already trading at about $ 34 and West Texas at $ 31.59. As the blocking restrictions are lifted, the demand for oil is expected to increase. China's oil demand is understood to be almost back to pre-pandemic levels. The rebound in the oil market also comes from the supply side. Last week it was announced that Saudi Arabia will cut production by another million barrels per day (bpd). There was talk that OPEC + would want to extend the current cut in production beyond June. American companies have been cutting production, and that has been evidenced in the Baker Hughes report of active rigs, which showed that the number of active oil and gasoline rigs fell to the lowest level on record.

Today the German ZEW for May has been known. The ZEW of the current situation has been -93.5, worse than the previous month and than the forecast. The ZEW for Economic Sentiment has risen to 51 from 28.2 in the prior month. In addition, the UK has released its March unemployment rate, which has fallen to 3.9% from the estimated 4.4% and 4% in February. Finally, note that Jerome Powell, president of the Federal Reserve, appears before the Banking Committee of the Senate today. He will do so in conjunction with Treasury Secretary Steven Mnuchin.

TECHNICAL ANALYSIS

"Strange session this Tuesday due to the sharp falls we have in titles such as Sabadell, which marks new lows of all time, or those of ACS or Bankia, which also caresses the historical lows. Not to mention Telefónica, which without apparent news falls about 10%, "explains José María Rodríguez, technical analyst at Bolsamania.

"What is clear is that the weakness, despite the strong rebound on Monday, remains intact. And again we are approaching the support we have at last week's lows (6,420), while above we have the area of ​​the 7,000 points, through which the decreasing highs of the last month and a half pass. In fact, only above 7,210 points (the highs in April) will we really get away from the danger zone, "the expert ends.