The stock markets of Europe and the United States today face the close of one of the most turbulent weeks in political and geostrategic matters, after the presidential elections in the country and the monetary policy meeting of the Federal Reserve, which ended yesterday with the reduction of the interest rates another 25 basis points, up to the level from 4.50% to 4.75%which is already its second descent of this cycle.
In this context and after having lost this Wednesday the support that represented the lower part of the lateral movement in which the index was immersed in recent weeks, the Ibex 35 yesterday starred in a rebound of 0.60%, which Technically, it cannot be classified as a sign of strength that wards off bearish risks.. And even more so after falling almost 3% on Wednesday.
“The bears have taken control of the short-term situation in the Spanish stock market and the threat now is that we could witness a larger consolidation that could seek, in the worst case scenario, 10,900/11,000 pointsbut it would be necessary to see if the intermediate support of the 11,138 pointswhich are the September lows, manages to stop an eventual fall,” reiterates Joan Cabrero, technical analyst and strategist at Ecotrader.
In Europe, which gave up its first supports last week (the 4,900/4,870 points of the EuroStoxx 50), the September lows in the 4,730 points They are still at XX% of this Thursday’s closing levels.
“I would consider reducing exposure to the stock market a little if that level drops to the minimum and especially the 4,675/4,700 pointswhich is the adjustment of 61.80/66% of the entire last rise from the August lows,” explains Cabrero.
And, according to the analyst, the EuroStoxx 50 has recently opened the door to “a broader consolidation phase, which does not surprise me since it fits with something that is more similar and proportional to the last consolidation phase prior to the fall of August”.
Chinese central bank earrings
In Asia, the region’s main indexes traded negative (the Nikkei practically flat) awaiting more details on the key legislative meeting in China that is expected to reveal support policies to boost the country’s weakened GDP growth.
And the markets are debating whether the measures of the meeting of the Permanent Committee of the National People’s Congressthe equivalent of parliament in China, will be enough to counter the threat of higher tariffs under a second Donald Trump presidency.
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