Central banks have once again gained prominence in the equity market in recent hours. Not only because of the proximity of the ECB meeting this Thursday to clarify what to do with interest rates (which also), but also due to the publication yesterday of the US inflation data, which reflected an increase in the CPI in November to 2.7%.
Investors and analysts see this figure as further evidence that the Fed is more inclined to apply a cut in the price of money at the meeting that will be held next week, something that favors the risk appetite and, therefore, spur immediately to the equity indices.
In fact, Asian stock markets have recorded a day of strong advances. The Nikkei managed to appreciate close to 1.5%, while the Hang Seng managed to overcome that barrier for a good part of the session. thanks to the advance of technology companies that were supported by Wednesday’s all-time high for the Nasdaq 100.
“Small surprises on the inflation front have paved the way for a more favorable risk environment throughout the region,” says Jun Rong Yeap of IG in statements to Bloomberg. “He soft landing In the US, the Fed’s easing and the positive seasonality at the end of the year can continue to make the stock markets obtain profits to finish the year well, along with less overbought conditions,” he stated.
Despite this, the Ibex 35 remains waiting for the ECB and giving continuity in the last few hours to the consolidation process begun in recent days, which is one step away from reaching levels that would mean correcting the 61.80/66% of the section bullish trend that has led it to be trading around 11,500 points to achieve the 12,150 points.
In fact, this percentage of correction would be reached if at some point it touched “the support range of the 11,700-11,750 points“explains Joan Cabrero, technical analyst and strategist of ecotraderwhich points out that “in a context of strength like the one we had until this Wednesday, it should not be lost.”
In this context and despite the declines that the Ibex 35 has experienced in recent sessions, “there will be no sign of bullish deterioration that would jeopardize the possibility of seeing a continuity of the current Christmas Rally, as long as a possible fall does not lead to the Ibex 35 to pierce the support of 11,580 points,” explains Cabrero. There are last week’s lows, which are relevant from a technical point of view since they allowed the Ibex 35 to overcome resistance.
In Europe, for its part, the level to monitor is the one presented by the EuroStoxx 50 in its traditional version in the 4,688 points. “There ran the base of the channel that has been limiting the increases during the last two years and this bullish channel has worked like a charm,” adds Cabrero. “That is, to simplify the monitoring work, do not consider reducing exposure to the stock market as long as the DAX 40 does not lose 10,900 and the EuroStoxx 50 does not lose 4,688 points,” he says.
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