The optimism reigns in the equity market. European stocks look for their third consecutive bullish session this week backed by the IPMI indices of the services sector, that this Wednesday throw more energetic readings than expected. The Ibex 35 takes run and with advances of close to 1%, it is already looming at the 7,500 point mark, unusual in the last two months.
The social revolts in the US go to a very secondary level despite the negative effect they are having on the de-escalation of confinement in the world’s first economy. Investors prefer to pay attention to the gradual recovery in China and Europe shown by the activity rates of the tertiary sector in May.
In this sense, the China Composite PMI it rises to 54.5 points from 47.6 the previous month, so it stands for the first time in expansive terrain (above 50 points) since the outbreak of the epidemic in January. The same occurs with the services sector, which climbs from 44.4 integers last month to 55 points this May. The readings from Germany (32.6 points), France (31.1), Italy (28.9) and Spain (7.1 to 27.9 points) are also pleasantly surprising to economists.
With this backdrop, the most bullish positions of the Ibex 35 once again assault several of the values that had suffered the most in recent weeks. Sabadell Bank adds 6% and recovers 0.3 euros per share. IAG, Cie Automotive, Ence and Indra are around 4% complete.
At the other end of the revaluation table, just half a dozen stocks. The ones who give in the most are Grifols (-1.7%) and Viscofan (-1%). MoreMobile It rebounds again to flirt with the level of 23 euros per share, above the price that the KKR and Cinven funds have put on the table to take control.
Many eyes are directed towards oil this Wednesday, because tomorrow a key meeting is held between the Organization of Petroleum Exporting Countries and its allies (OPEC +) from which a new well pumping cut-off agreement is expected to emerge. It is the engine of a Brent barrel that recovers the $ 40, with increases of more than 1.5%.
In the opposite direction the price of the gold, although it holds with solvency the $ 1,700 per ounce. The unrestrained rise in equities encourages investors to search for riskier assets.
Waiting for the meeting of the Governing Council of the European Central Bank (ECB) that will take place this Thursday, the euro continues adding in the currency market. The change against the dollar amounts to 1.12 “green bills” this Wednesday.
On the secondary fixed-income market, the spread on peripheral bonds continues to narrow as Lagarde confirms more muscle for its anti-virus program. The Spanish bond yields 0.58% compared to -0.40% of the German benchmark bund, resulting in a 98 basis point risk premium.