The main European indices closed with strong increases with investors focused on the reopening process of the main developed economies, the decrease in coronavirus cases in most countries and news about the development of new vaccines against Covid-19 . Further, The good performance of Wall Street also had a decisive influence on the good closing of the rest of the markets.
From Link Securities recognize that optimism has settled in the markets to such an extent that those investors who missed the initial rally of the stock markets after the collapse of the indexes in March “are running after the market, with the risk that this normally entails ”. While it is true that there are indications that the main economies have bottomed out in April and May, and that there are symptoms that activity is beginning to recover normally in many sectors, these are very slight and do not serve “to determine the rate at which these economies as a whole will recover”.
Isabel Schnabel, German representative on the Governing Council of the ECB, downplayed the disagreement between the German Constitutional Court and the ECB and ensures that perhaps next week the body agrees to expand the 750,000 million euros of its fixed income purchase program (PEPP)
The most positive thing is that governments seem aware of the need to fiscally support companies and citizens, as can be seen in the packages approved by the governments of Japan and Singapore or the aid on the automotive sector by the French government.
Today the good tone will continue in the European session although we will have to be aware of whether Wall Street continues its upward climb. A break in the 200-session average, a level it lost in March, could trigger new inflows into Western equity markets.
In the absence of macro references, investors will continue to watch events in Hong Kong, where China seems determined to continue with its plans to control the security of the autonomous city with an “iron fist”, something that will provoke strong tensions in the market. American. In fact, Donald Trump has announced that he will take drastic measures this week. Textually he said that “they will be very powerful.”
In the US, the consumer confidence index for the month of May was published yesterday, which rose to 86.6, from 85.7 the previous month. A slight improvement, however, does not clear any doubt.
Renault, Valeo, Volkswagen and other protagonists in the European stock markets
At the business level, Renault announced a plan to cut 5,000 jobs by 2024, according to the French press.
Valeo will strengthen its position in France, especially by increasing the number of production lines for 48V electric motors located in the country.
Volkswagen It is about to buy 50% of Anhui Jianghuai Automobile Group Holding for at least 3.5 billion yuan, while it will also become the largest shareholder of Guoxuan High Tech, as reported by ..
UniCredit approved the loan of 1,250 million euros to Autostrade Rediocor, whose CEO, Roberto Tomasi, said that the company’s commitment to carry out maintenance work is not linked to receiving state guarantees.
AIR France – KLM it has restarted talks with unions to cut staff as part of a restructuring to be unveiled in the coming months, a plan that also calls for a 40% cut in France’s national capacity by the end of next year.
Novartis It continues its own study of the antimalarial drug hydroxychloroquine against COVID-19, even as the World Health Organization puts its own effort in various countries on hiatus to examine safety concerns.
The poil fell from the highest level in 11 weeks on signs that Russia planned to start cutting supply cuts starting in July, as tensions between the United States and China increased amid the spectrum of sanctions. Futures fell 0.4% in New York after closing above $ 34 a barrel for the first time since March. Moscow wants to reduce the restrictions in line with the OPEC + agreement, but a Kremlin spokesman said Russia would analyze the market before making a decision.
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