Joan Cabrero, adviser to Ecotrader, points out that right now there is a 3.5% drop margin in the European stock markets before considering selling. “The latest rebound has moved the indices away from key supports, such as the 4,000 points of the EuroStoxx 50 or the 14,800 points of the German DAX 40, which are currently 3.50% away”, explains the expert in technical analysis.
“In the case of the Ibex 35, the key support to watch is at 8,360 points, but there is an intermediate one at 8,500 points that has worked perfectly,” he continues. “As long as these supports remain, I am not in favor of reducing exposure to the European stock market,” he adds.
“The short-term rise has served for the European stock markets to fill the bearish gap that they opened at the opening on Monday, which in the case of the Ibex was generated from 8,800 points. To speak of strength, the minimum required is that they manage to close this gap, for which the Ibex should exceed those 8,800 points at the close,” he concludes.
More uncertainty in Ukraine
The main indices in Europe and Wall Street anticipate falls at the opening of the session on Thursday due to the increased tension on the borders of Ukraine and in the regions controlled by pro-Russian separatists.
These concerns overshadowed the minutes of the Fed’s last meeting, published this Wednesday and in which it is concluded that the institution will soon begin to raise interest rates and that it is on alert for persistent inflation that would justify an adjustment in monetary policy. faster, without more new details.
bond purchases
Risk aversion due to the worsening of the Ukraine crisis has led investors to buy eurozone bonds, whose yields are slowing down the escalation of recent days.
Italy’s benchmark debt interest returns to 1.9% after touching 2% on Wednesday. And the 10-year Spanish bond returns to 1.25%, after clearly exceeding 1.3%. The risk premium remains close to 100 basis points.
Get to know Ecotrader, elEconomista’s investment strategies portal
Facebook
Twitter
Linkedin