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Strong volatility in the Ibex: it falls about 3% while the 'vaccine effect' is diluted


Losses are 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%, now yielding about 3%. Within the index, the sharp falls in Siemens Gamesa stand out –after a recommendation cut by Goldman Sachs-, in some banks, such as Sabadell or Bankia, in Ence, in Telefónica … All of them plummet between 7% and 10%.

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.

In addition, this Tuesday the exchanges have in mind the announcement, which was known at the close of Monday, that 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 already trading at about $ 35 and West Texas at $ 32.55. 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.

All in all, the Ibex yesterday saved a 'match ball', as the experts of Bolsamanía point out, taking advantage of the fact that the European banking sector leaned on historical lows and rebounded from those levels. "In the shortest term we must now look at the resistance we have in the bearish gap of the 6,922 points and above April highs at 7,210 points. And below, on the side of the supports, it is clear that it can not be another level than the lows of last week in the 6,420 points"explains José María Rodríguez, analyst at Bolsamanía.

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.

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