The new threats of the president of Russia, Vladimir Putinand the announcement by the Fed of another interest rate hike 75 points (2008 highs) in the price of money, have favored a new claw of the bears in Western equity markets.
The Red numbers They have once again spread through the markets on both sides of the Atlantic, favoring an approach to supports that must be watched.
For now , the selling pressure seen in the European markets has not been enough to provoke the perforation of the 3,450 points of the Euro Stoxx 50which is the level that has been indicated since eco trader as key in the bullish future of the continental stock markets for the coming weeks and which is 1% away from the closing levels on Wednesday.
The German Dax also holds on 12,400 points, a level that is close to 3% of the closing levels of the day on Wednesday and the IBEX 35 managed to remain above the key support of the 7,765 points.
“As long as they are not lost, the chances that we can witness an upward counterattack will remain intact, without prejudice to the fact that for us to trust it, it is necessary for the Spanish selective to overcome the resistance of the 8,350 pointswhich is where the bearish guideline runs that arises from uniting the highs of May and August, and the Dax 40 13,570 points“, explains Joan Cabrero, technical analyst and advisor to eco traderwho highlights that the loss of these levels in a generalized way would open the door to falls of 10%.
In this sense, it is also necessary to monitor the 7,500 of the EuroStoxx 50 in its version Total return, which is the one that contemplates the reinvestment of dividends. These are the lows of March and “already in July they also stopped the falls in the European stock markets,” explains the expert.
Yen falls to 1990s lows
Nobody forgets that he japanese yen is being one of the most affected assets in recent weeks and months Today, the Japanese currency marks a new low in its cross against the US dollar and thus registers its lowest level since 1990.
A behavior that occurs after learning that the BoJ has kept its monetary policy unchanged in the rate meeting that took place today. A decision that does nothing but highlight the divergences in monetary policy that both central banks maintain, which are increasing.