The Ibex (+ 1.13%) has behaved very volatile this Wednesday. It has managed to close very close to the highs of the day thanks, among others, to the energy companies or Santander (+ 3.38%). However, the lifting of the short veto is still noticeable (yesterday the selective fell 2.5% affected by this decision) and other financial companies have not been so lucky. This is Bankia (-4.63%) or Sabadell (-2.89%), which they have fallen sharply and mark new historical lows. Experts acknowledge that it is “very tempting” to get short in the countries that are suffering the most from the crisis.
This Wednesday they are published the minutes of the last meeting of the Federal Reserve (Fed), in which investors will look for clues on what to expect from monetary policy. In addition, the UK CPI for April has been known (0.8% vs. 0.9% expected and 1.5% prior) and the CPI of the Euro Zone (weakened to 0.3% in April, down from 2016).
In Europe it will also be published preliminary consumer confidence in May. “It is probably too early to expect a rebound in consumer confidence, but it is one of the things we hope for in the coming months, especially now that we are seeing a gradual reopening of many countries,” experts at Danske Bank said.
The latest positive stimuli in the markets, with that hope of a vaccine from the modern American company, they have faded. An article in ‘STAT News’ explains that the Phase I trial of Modern It lacks sufficient evidence, casting doubt on the study.
In the UK, several Bank of England politicians, including Governor Bailey, will speak this afternoon. “We will look for signs of where the policy committee is moving regarding the reduction of rates to negative territory“they add from Danske.
“If we look at the daily chart of the Ibex we can see how it has been embedded within a broad side for two months that gradually narrows. With a support zone at April lows and from where it has recently started to bounce, at 6,420 points, “explains José María Rodríguez, technical analyst at Bolsamania.
“That is to say, any possibility that we will finally go out to the upside of said lateral happens because yes or yes the minimums of last week are respected. And if we were to see the price jump above the resistance of 7,000 points, where the part passes higher of the resistance that joins the last decreasing maximums, an important signal of strength would be activated in our selective that can end up taking him to the zone of the 8,000 points (50% of adjustment of the violent previous fall) “, ends the expert.