Ibex Stops At 9,000 While Anticipating Ascent In ECB’s Expansion Estimate

Ibex Stops At 9,000 While Anticipating Ascent In ECB’s Expansion Estimate

Week of negatives for markets on this side of the Atlantic -moderate falls, with the exception of the national parquet-, whose behavior, in the words of Ecotrader’s advisor, Joan Cabrero, was “of a consolidation nature”, ending, in most cases, without advances that managed to overcome the resistance marked by the expert.

All this while waiting for the meeting of the European Central Bank (ECB) next Thursday, in which 100% of analysts predict a rise in the ECB’s inflation forecast for 2022 .

Despite being close to it throughout the week, the Ibex finally stopped and was unable to overcome its resistance at 9,000 points set by Cabrero, which was established as the optimum area for the Spanish index to have “new upward technical evidence that suggest additional increases in the coming weeks”, in the words of the expert. Closing the week around 8,720 points – and staying very close to placing their accounts in negative again for the year – the Ibex 35, which lost 2.3% of its value in the last five days, did not close the door to suffer additional falls of almost 7% that could return it “to the low zone of May around 8,135-8,200 points”, according to Cabrero, to which he adds that “the reach of the low zone of 2012 around 5,800-5,900 points has been achieved stop the downward trend that has defined the Ibex 35 over the last few years.

This support environment has been a long-term bottom and the point of origin of an upward trend in the coming years whose first objectives are to return to pre-existing levels. Covid in the 10,100 points “.

For its part, the EuroStoxx 5o also failed to overcome its resistance, established at 3,840 points , despite the fact that it was only 1.6% away .

Exceeding this zone would mean for the selective European “thinking of at least one rise to levels where the first leg of the rebound ended, that is, the 4,025-point zone, and dreaming of the possibility of witnessing rises towards the ceiling of the channel, which It appears in the area of ​​4,200 points, and even towards a return to the highs of the year around 4,400 points,” says Cabrero.

Across the pond and breaking with the European behavior in the last five days, the main US markets rose in value during the week and achieved notable gains of around 3% in the middle of the session.

Despite all this, the performance of Wall Street in the year continues to be one of the worst on both sides of the Atlantic. The Nasdaq 100 was still in a bear market, losing over 23% of its value for the year. The S&P 500, for its part, lost over 13% since the first of the year.

For Ibex 35 securities, Indra is the firm that has boosted its share price the most since Monday, registering gains of around 4% in the weekly calculation. At the top of the table, Meliá and CIE Automotive closed the top 3 for the week with increases of 2.8% and 2.2%, respectively.

Not so lucky was the week for Telefónica , which emerged as the most bearish company of the 35 in the last five days , falling 6.26% . Colonial and Grifols closed the bottom of the table, with decreases of around 6% for both values.

Skyrocketing returns
In the fixed income market, and even without knowing the words of Christine Lagarde next week, the yields of the main 10-year bonds were soaring this week. This is the case of the North American bond that, in the middle of the session, touched a yield of 2.96%, which it had not reached since the beginning of May. For its part, the German bund reached a yield of 1.27%, which not only constituted annual maximums, but also stood at levels of March 2014.

In the fixed income market, the eurodollar broke mid-session with its two consecutive weeks in positive and the currency lost about 0.2% of its value since Monday. The change stood at 1.07 dollars .

For its part, oil fell this week about 1% in the middle of the session and settled at 118 dollars a barrel of Brent . Despite this, during these days oil returned to trading above 120 dollars a barrel, levels that it had not seen since the end of March and OPEC announced its increase in production that did not convince the market .

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