The Ibex and the rest of the European stock markets continue to advance positions this Wednesday (Ibex: + 0.8%. 7,060 points) after the increases of the last day. Wall Street also finished with notable increases (especially the Dow Jones), and in Asia there has been a mixed sign session. The Spanish team now has its next goal at the highs of April -7,210 points-.
“It seems that this may be the good one, although the ideal for further confirmation of the movement is that the overcoming of resistance occurs in weekly candles. The feelings are not bad, as the Ibex is ‘poking its head’ above the bearish guideline in the short term, the one that joins the declining maximums of the last two months, “explains José María Rodríguez, analyst at Bolsamanía. “As a support area to be respected at all times we have 6,420 points, minimums of the last two months. Although the most important resistance at the moment it is at the highs of April, at 7,210 points“, Add.
Tensions between China and the US are again the center of attention today, although the markets seem bent on not paying too much attention to this issue. President Donald Trump has claimed that The US is ready to take “very interesting” actions towards China by the end of the week in relation to Hong Kong. In Hong Kong, protests continue against China’s plans to change national security laws. Experts point out that these tensions partially halted the gains from last session on Wall Street.
On the positive side, comments from Federal Reserve Governor James Bullard that They were optimistic about the recovery in the US economy and the prospects for the labor market. Expect a strong recovery in the third quarter and unemployment to drop to 10% as the economy reopens.
Going back to Asia, Japan has announced that it will activate a new stimulus package worth $ 1.1 trillion. It will include a considerable amount of direct spending to cushion the economic blow of the coronavirus pandemic, according to a draft of the Japanese government’s budget obtained by ..
Otherwise, this Wednesday the president of the European Central Bank (ECB), Christine Lagarde, will participate in a virtual session answering the questions published on social networks. Apart from this, experts from Danske Bank indicate that they will be pending during the day of the ‘usual suspects’: the data of the Covid-19, the reopening of advanced economies, the increase in tensions between the US and China and the increase in risks around Brexit before the fourth round of negotiations that begins on June 1.