The Ibex started the month of June with strong increases (+ 1.76%, 7,221 points) after the words of Donald trump last Friday were not as bad as expected and after a few good macro data in China. In Spain, MásMóvil has shot up more than 23% after the friendly takeover bid launched by Providence, KKR and Cinven at € 22.50 per share.
“Investors were too fearful, but Donald’s appearance was not so harsh. The American leader went into more detail about how he will remove Hong Kong special status and treat the region in the same way as mainland China, “says David Madden, an expert at CMC Markets in London.
Asia ended the day on Monday positive after Trump was less hard than expected and after the favorable data known in the last hours. Over the weekend China’s May Manufacturing PMI was released, whose reading was at 50.6, slightly below the 50.8 published in April. The industry has experienced positive growth for three months, although the rate of expansion has cooled. The non-manufacturing PMI reading was 53.6, its highest level since the pandemic began. China’s Caixin manufacturing survey was released this morning, with a reading of 50.7, while the consensus estimate was 49.6. The previous reading was 49.4.
May manufacturing PMIs in Europe and the United States were released this Monday. In general, they have been better than expected, although in Germany and the Euro Zone they came out slightly below expectations and the previous month. In Spain, the manufacturing sector improves in May, but continues in contraction territory.
Going back to today on the other side of the Atlantic, investors are also very aware of the violent riots that have occurred this weekend. Protests erupted from Los Angeles to New York after George Floyd, a black man, died last Monday after a confrontation with police in Minneapolis in which an officer, Derek Chauvin, was recorded digging his knee into Floyd’s neck until the handcuffed man lost consciousness and later died.
Experts say clashes between civilians and law enforcement, including fires near the White House, are not expected to have long-term economic repercussions, but stress that the protests come as many retailers and businesses start to raise their heads after the pandemic, and that now they are involved in the looting and vandalism that have occurred this weekend.
“The direct economic impact of the protests is small, at least so far,” says Mark Zandi, chief economist at Moody’s Analytics. However, he adds that the short-term harm to consumers and the business community may be more substantial.
Finally, remember that this Thursday there is a meeting of the European Central Bank (ECB). It is, without a doubt, the great event of the week.
The Spanish selective has managed to close above the resistance of the April highs at 7,210 points. “Above 7,210 points with ease we will have, a priori, an important sign of strength, and therefore continuity of the rebound, “explains José María Rodríguez, technical analyst at Bolsamania.
“The following upload targets are in the last daily bearish gap of 7,440 points and adjustment of 38.2% of the previous fall “, qualifies the expert.