The week began yesterday with a strong pick-up of profits in the main world stock markets after last week, despite the fact that Europe closed higher, the doubts of Wall Street were palpable once the Fed minutes put fear again. to see up to four rate hikes in the body of investors. Today, futures point to further rises in the European park.
In addition, today is a delicate day since both Weidmann will appear in Europe, after leaving the Bundesbank, as well as Christine Lagarde herself, while Jerome Powell will appear on the other side of the Atlantic, although it must be remembered that there will be no meeting of types until the last week of the month.
The main European stock markets, which until now had weathered the Wall Street falls very well, are beginning to feel more intimidated by the bearish deepening of the American stock market. From a technical point of view, “I fear that Europe will not be able to hold out much longer unless we witness a bullish turn on Wall Street soon, especially in technology,” explains Joan Cabrero, an advisor to Ecotrader.
“If that bullish reversal is not formed soon, the EuroStoxx 50 could go back to test the strength of its bullish guideline, which I again draw on the attached chart and which currently runs through the 4,060 point zone, whose scope is very likely to stop the falls again and it will be a very interesting buying opportunity “, adds the expert, who concludes that” up to this guideline there is a margin of each of 4.50% “.
The positive German bond?
The flight race for sovereign bonds has begun. Investors are selling off their government debt in the face of mounting pressure from central banks, especially the Fed, as they accelerate the withdrawal of economic stimulus. In fact, Goldman Sachs is already talking about up to four rate hikes in the United States this year and, although in Europe the pace will be much slower, the effects of tapering They are also being seen in the main references. The clearest is that of the German Bund, which trades at minimum prices (maximum profitability) at -0.03% and is already touching the positive terrain, something that has not happened in May 2019.
Oil recovers $ 81 per barrel
In the commodities market, the focus remains on oil. Tomorrow, Wednesday, the weekly crude inventories in the United States will be known, an indicator that is being key to determine if the greater supply put on the market by OPEC and its allies is meeting the expected demand. In any case, the price of oil is not showing any weakness and today it is rising again more than half a percentage point, recovering the level of 81 dollars per barrel of Brent.
Industrial production and lectures by Lagarde and Powell
This Tuesday, the reference data in Spain will be the industrial production index for November, although the investor will also have the publication by the Bank of Spain (BdE) of the financial accounts of the Spanish economy corresponding to the third quarter of 2021. In companies, Repsol pays a dividend. Outside of Spain, the conferences of the president of the European Central Bank (ECB), Christine Lagarde, and in the United States, of the president of the Fed, Jerome Powell, stand out.