How short is joy in the house of the poorsays the Spanish proverb. The truce which yesterday gave the market the election of the new Secretary of the Treasury, Scott Bessent (to the taste of the market as shown by the evolution of the sovereign debt and dollar since the announcement of his name), it has not lasted very long and is today broken by the falls of more than 1% – which were even more significant at certain times of the day – recorded by the stock markets Asian countries, which have the Nikkei as the main stakeholders.
The statements of the new President of the United States, Donald Trump, announcing on his social network that The United States will impose additional tariffs on China, Mexico and Canada, raising concerns about its policies..
However, despite the consolidation of recent weeks, the supports of the main European stock exchanges still remain standing. This is the case, for example, of 10,900/11,000 points of the Ibex 35, the perforation of which did not materialize. In fact, for now, the national index “continues to remain strong and in a price zone that is in no man’s land,” says Joan Cabrero, technical analyst and strategist at eco-retailer.
The supports encountered by indices such as the EuroStoxx 50 in its Total Return SX5R version (which takes into account the distribution of dividends) in the 10,900 points (corresponding to the August minimum) as the 18,900 points of the German Dax 40, the other major index which since eco-retailer monitoring is recommended.
On the other side of the Atlantic
In the short term, the North American market is wondering whether it should continue its impeccable upward trend or, on the contrary, develop a broader consolidation phase that could ruin the classic Christmas rally usually so common at this time.
“The possibility of seeing this Christmas rally will remain alive as long as the North American indices do not close the gap that they opened upwards after Trump’s electoral victory”, explains Joan Cabrero in this sense.
For this gap to close, the Nasdaq 100 would need to close below 20,000/20,227 points. “The risk of witnessing the loss of this support would be reduced if the Nasdaq 100 closed the gap in the Bear Island which opened last week from 20,900 pointsIn fact, in this case, a scenario of bullish continuity in this last part of the year would be more likely,” explains the expert.
