The Federal Reserve this Wednesday cut interest rates by 25 more points in its last meeting of the year, but pointing to a context not so dovish looking ahead to next year, a year in which the market now only discounts two other drops, which is why Investors have started selling stocks and bonds and causing another week of losses in the absence of Friday’s session.
The falls in recent sessions have led to the Ibex 35 to approach the bullish guideline that has been guiding the rises since October 2022, which currently runs through the area of 11,150/11,300 points, analogous to the support of the 39,300 Ibex with dividends. If it ends up following that guideline, the selective would approach, a priori, a new entry point to buy the Spanish stock market, according to the technical advisor of ecotraderJoan Cabrero.
However, the expert also advises placing a stop at the November lows of the Ibex with dividends at 39,300 points. “This is where the support is today that should not be lost if we want to continue trusting in a bullish context in the short / medium term“, commented Cabrero. If the 11,150/11,300 of the Ibex 35 and especially the 39,300 of the Ibex with dividends are lost, the threat would be to witness a 10% drop towards the August lows of 10,300 points. Until then I would not be a supporter to buy the Spanish stock market again.
He fixed income market registered a rebound in returns after the last meeting of the United States Federal Reserve. The warning from the president of the institution, Jerome Powell, that inflation will also capture his attention during 2025 placed the US ten-year bond above 4.5% again. In fact, all sections of the debt curve from twelve months onwards have recorded an increase in returns of more than ten basis points so far this week.
This also has its effect on European sovereign securities. The German one-decade bond once again exceeds 2.3%. In longer maturities the selling pressure is greater. As an example, Spanish 30-year bonds they erase a large part of the profits of investors due to the fall in the price of these bonds (they go in the opposite direction to the profitability at maturity).
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