The Ibex closed with a 1.13% drop despite the increases in Naturgy (2.03%) and Inditex (1.46%). These green numbers have not been able to overshadow bad data dthe PMI services for April in Spain. This one that has sunk to 7.1 from 23 of the previous month and against the estimate of 10. The Spanish selective closed at the lows of the day after spending much of the session trading flat.
Michael Hewson, director of analysis at CMC Markets in London, already anticipated a very bad fact, and warned: “The pain will be more acute in Spain and Italy, which have seen their tourism industry completely annihilated this year, as their potential clients are keep them away, either because they are locked up or because they lose their jobs. This will be a blow to both countries, which have suffered a lot in the last ten years as a result of the European debt crisis, and who depend on tourism to obtain thousands of million euros of revenue. “
Italy’s PMI has finally come out better than expected. An estimate of 9 and has been left at 10.8. Of course, it has fallen from 17.4 the previous month. In France, it has fallen to 10.2, from the previous and expected 10.4, and in Germany it has risen to 16.2 from the previous and expected 15.9.
In the business context, today the accounts of Siemens Gamesa, which has lost 165 million in its second fiscal quarter, with an impact of 56 million due to the coronavirus. In addition, the company has said that the market recovery in India is delayed and affected by Covid-19. Outside of Spain, the Credit Agricole or Unicredit, also impacted by the pandemic.
All in all, the squares of the Old Continent have fallen moderately after seeing green numbers this morning in Asia, while Wall Street is trading mixed at the close of the European market. Across the Atlantic, Donald Trump acknowledged Tuesday that the reopening of parts of the nation’s economy now, against the advice of many health experts, it would inevitably cost some Americans their lives. Still, he argued that the benefits outweighed the costs.
“There may be some (deaths) because you will not be locked in an apartment or house or whatever, “Trump said in an interview on ‘ABC’.” But, at the same time, we are going to practice social distancing, we are going to wash our hands, we are going to do many of the things that we have learned to do in recent times, “he added.
As for oil, it rises after the increases recorded in recent days. Brent is trading at $ 29.07 and West Texas at $ 23.20.
Finally, it should be remembered that in Spain the extension of the alarm state is voted today. The PSOE has secured the support of Citizens while the PP has finally communicated that it will abstain.
“The Ibex closes asking the referee for the time, since we have the support of 6,580 points around the corner. Much has to change things so that it is not attacked, with a high probability of even drilling it, “explains José María Rodríguez, technical analyst at Bolsamania.
“The problem we have is that our selective is much weaker And now Europe and Wall Street are taking a little breather after a rebound of more than 30% in many indexes, “he added.
“Since we didn’t know how to do our homework when he played, getting on his rebounds, now they can come badly given to the minimum correction that occurs. Furthermore, the banks remain extremely weak and I do not rule out a relapse towards the annual lows of 5,800 points, “the expert ends.