Losses have been imposed this Tuesday throughout Europe, also on the Ibex, after the sharp rises of the last day. The selective Spanish, which It has started the day with increases of more than 1%, finally it has yielded 2.51%. Within the index, there have been notable falls in some banks, such as Sabadell (-11.87%) or Bankia (-11.13%) in Siemens Gamesa (-6.76%) –after a recommendation cut by Goldman Sachs-, in Ence (-6.77%), in Telefónica (-9.43%).
It should be remembered that this Tuesday The veto on short positions has been lifted both in Spain and in five other European markets. This fact has led to the falls of the session.
The strong rises of the last day -and this morning in Asia- have been motivated, among other things, by the news about the modern American pharmacist, which has announced positive results from your Covid-19 vaccine. There is nothing that encourages markets more than the possible success of a vaccine, and a sample of it was seen again yesterday. However, the impact of this news has vanished today; volatility prevails and the indices return to negative terrain.
Investors are also aware of the announcement, which was made at the close of Monday, by which France and Germany have presented a fund with grants of 500,000 million euros to alleviate the effects of the pandemic in Europe. The fund is conditional on countries benefiting reduce the deficit and make structural reforms. Both countries have explained that their objective is to approve this fund "as soon as possible"But they added that it will be based "on a clear commitment by the countries to follow and implement sound policies and an ambitious reform agenda."
In another order of things, US President Donald Trump has threatened to Permanently cut US funding to WHO (World Health Organization) in 30 days. It is already known that Trump is not happy with how the body has managed this entire crisis.
The oil market experienced a significant recovery on Monday. Brent is now trading at about $ 34 and West Texas at $ 31.59. As the blocking restrictions are lifted, the demand for oil is expected to increase. China's demand for crude oil is understood to be almost back to pre-pandemic levels. The rebound in the oil market also comes from the supply side. Last week it was announced that Saudi Arabia will cut production by another million barrels per day (bpd). There was talk that OPEC + would want to extend the current cut in production beyond June. American companies have been cutting production, and that has been evidenced in the Baker Hughes Active Platforms Report, which showed that the number of active oil and gasoline platforms fell to the lowest level on record.
Today the German ZEW for May. The ZEW of the current situation has been -93.5, worse than the previous month and than the forecast. The ZEW for Economic Sentiment has risen to 51 from 28.2 in the prior month. In addition, the UK has released its March unemployment rate, which has fallen to 3.9% from the estimated 4.4% and 4% in February. Finally, note that Jerome Powell, president of the Federal Reserve, appears today before the Senate Banking Committee. He will do so in conjunction with Treasury Secretary Steven Mnuchin.
"Strange session this Tuesday due to the sharp falls we have in titles like Sabadell, which sets new all-time lows, or those of ACS or Bankia, which also caresses the historical lows. Not to mention Telefónica, which without apparent news drops by around 10%, "explains José María Rodríguez, technical analyst at ForexNews.online.
"What is clear is that the weakness, despite the strong rebound on Monday, remains intact. And again we are approaching the support we have at last week's lows (6,420) while at the top we have the area of 7,000 points, where the decreasing maximums of the last month and a half pass. In fact, only above 7,210 points (the April highs) will we really get away from the danger zone, "concludes the expert.
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