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Euphoria on the Ibex: closes with a weekly advance of 11%, at levels from the beginning of March


The Ibex has closed a round week in which it has managed to advance close to 11%. The high of 4% this Friday has allowed it to be placed above 7,800 points, levels that have not been seen since the beginning of March.

It has been a good week, a week in which the places have only wavered on Thursday, just when the European Central Bank (ECB) spoke and announced a new bazooka to face the pandemic: Has expanded its pandemic asset purchase program (PEPP) at 600,000 million euros, thus bringing the total firepower up to 1.35 trillion euros. In addition, it has extended the program until June 2021. Perhaps because the market was already speculating with something similar, the bags, which had been rising strongly on Monday, Tuesday and Wednesday, took a break in the last session.

This Friday there was a main appointment for investors, and it was the May employment report in the United States. Despite the expected drop of 8 million jobs, the data has surprised the markets. The world's leading economy has created 2.5 million jobs in May. According to Danske Bank, these data are a sign that the US economy is bottoming out. "A positive sign is that private consumption is gradually improving," he says.

Otherwise, the fourth round of negotiations for a trade agreement between the European Union (EU) and the United Kingdom concludes today. The market he does not expect that there has been great progress.

All in all, the Ibex advances firmly towards 8,000 points after a very favorable week in which, for the moment, the selective rises more than 9%. "Corrections aside, now we find the next area of ​​control of the Spanish selective in the 7,950-8,000 points: 50% decline. And above, and larger, we have the 61.8% adjustment, which in turn coincides with the weekly bearish gap in mid-March, at 8,375 points, "explains José María Rodríguez, analysts at Bolsamanía.

Finally, regarding oil, week ends with no news from OPEC + while West Texas crude consolidates a little below $ 38 and Brent holds on to $ 40. Throughout the week there have been conflicting news and now it is speculated that the meeting of large producers could take place this Saturday. There is also speculation that the delay in the OPEC + decision could be due to disagreements between the parties. "This last scenario could cool the environment and erase part of the recent oil gains," says Ipek Ozkardeskaya, analyst at Swissquote Bank.

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