The European squares have closed with slight increases at this time on Friday, with the exception of London, which has done so in red after announcing a quarantine for all those who come from abroad. The Ibex has advanced 0.17% thanks to the great push of the banks and Mediaset (+ 3.87%). This, after the session of strong cuts in Asia – especially in the Hang Seng – after China has reported that is planning to introduce a national security law in Hong Kong. Such a move would strengthen Beijing’s control over the territory, which would likely provoke protests.
Last year protests were common in Hong Kong, some of which caused major disruption, so investors are now concerned that the situation may flare up again. Experts say the president is likely Trump intervene in the matter if the Chinese authorities take a firm stance on Hong Kong.
Within the Ibex, there have been notable increases in Bankinter (+ 5.96%), Bankia (3.75%), Santander (2%) … while titles such as IAG (-7) have been found on the negative side , 28%) and Acerinox (-1%). In the Continuum, Deoleo (-32.29%) has fallen sharply (-15%). The CNMV has announced that it will be suspended from trading since Monday in the framework of the ‘accordion operation’ that is being carried out.
The day on the other side of the Atlantic is not being very positive either. Wall Street listed with mixed sign. The give and take between China and the United States continues to capture the attention of the market. In addition, it is very important to note that the S&P 500 has slowed down against the significant technical resistance presented by the main world indicator in the area of 2,950 to 3,000 points.
Continuing with Asia, due to the uncertainty caused by the Covid-19 emergency, the Chinese government has not issued a growth target for 2020, which has also weighed on stocks in the Far East. Tensions between the United States and China have increased lately, but this Friday China has promised to implement its trade agreement with the United States.
As for other issues, the latest macro data has drawn a picture of economic improvement in both Europe and the United States. France, Germany and the United Kingdom released their manufacturing and services PMIs for May on Thursday, and all reports showed that activity levels are still in contracting territory, but they are not as bad as the previous month. “It is encouraging to see that economic activity is moving in the right direction, but make no mistake, PMI levels are still horrible”says David Madden, an analyst at CMC Markets in London.
Otherwise, the focus of the market continues to be on the pandemic. United States has paid AstraZeneca up to $ 1.2 billion to secure almost a third of the first 1 billion doses planned for its vaccine experimental, while Great Britain announced Thursday that it will acquire more than 10 million tests of antibodies against the coronavirus of Roche and Abbott.
Finally, remember that this Friday are published the minutes of the last meeting of the European Central Bank (ECB).
“The Ibex closes with slight increases (+ 0.17%) and the technical situation does not vary at all with respect to what was discussed days ago. We are still in nobody’s zone, halfway between the support of 6,420 points below and 7,000 points above “, explains José María Rodríguez, technical analyst at Bolsamania.
“Until we get out of there it doesn’t matter what we do. The problem I keep seeing is that Dax, S&P and Euro Stoxx 50 look different“he clarifies.
“These are minimally correcting the increases of the last rebound but in no case do they look weak. Quite the contrary. And that intrinsic weakness of our market can lead us to have a setback at any time, with the risk of returning to the March lows, “concludes the expert.