The spanish bag It faces the last session of the month with falls of 1% that leave the Ibex 35 below 7,200 points. The objective of this Friday is to try to maintain that level, a somewhat complicated goal with investors exiting risky assets. after seven consecutive days of climbs.
In the midst of the financial crisis, this has been the Best streak of the Ibex since September 2018, totaling 9.3% in the last seven sessions and leaving the monthly balance for May with 4% gains for investors at the end of Thursday.
The agreement for the european fund Aid to member countries has injected optimism into the market in recent days. But investors know that caution must be maintained, and much more in a session like this one on Friday, marked by an avalanche of macro data.
At 11 o’clock it will be the turn of Italy with its CPI for May (-0.1%) and the Eurozone + 0.1% annualized) to spend the afternoon with the April trade balance of goods for the USA, personal spending (-12.6% and -0.3% underlying) at 2:30 p.m.
At the same time we will meet Canada’s first quarter GDP (-10% and -9% in March) and at 16:00 the University of Michigan consumer expectations for May (67.7) and consumer confidence (74) and an hour later we will have a conference by the President from the Fed, Jerome Powell to end the last session in May.
Another obstacle to the increases in the last session of the week will be doubts about how the confrontation between the US and China for the autonomy of Hong Kong can end. “China went one step further in undermining it after passing the new security law“This is in contrast to the agreement whereby in 1997 the United Kingdom transferred the island to China, which on Thursday encouraged some investors to take advantage of recent increases to reduce risk positions,” said analysts at Link Securities.
“It was precisely a fact related to the Hong Kong conflict that yesterday afternoon caused the US stock markets to turn lower and their main indexes closed with slight decreases, which were much more pronounced in the case of the Russell 2000 index, made up of small-cap companies, ”they explain, pointing to Trump’s threat that measures will be taken that could exacerbate the conflict between the two countries.
Companies in focus
In the business section, all pay attention to Iberdrola, which has just achieved, in the midst of the coronavirus pandemic, completing an issue of 200 million euros in bonds refinanced at the price of its shares, with the lowest cost in its history.
Investors are also following the airline sector closely, after Moody’s has downgraded the ratings of the IAG group, British Airways, Wizz Air and easyJet, all with a ‘negative’ outlook given the forecast that the sector will not recover the volume of passengers from 2019 to 2023 at the earliest.