The stock markets of Europe and the United States are today facing the end 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 interest rates by an additional 25 basis points, to the level from 4.50% to 4.75%which is already his second descent of this cycle.
In this context and after losing this Wednesday the support which represented the lower part of the lateral movement in which the index had been immersed in recent weeks, the Ibex 35 experienced a rebound of 0.60% yesterday, which Technically, this cannot be classified as a sign of strength that wards off downside risks.. And even more after a fall of almost 3% on Wednesday.
“The bears have taken control of the short-term situation of the Spanish stock market and the threat now is that we could see a greater consolidation which could seek, in the worst case, 10,900/11,000 pointsbut it would be necessary to see if the intermediate support of the 11,138 pointswhich are the lowest of September, manages to stop a possible decline”, reiterates Joan Cabrero, technical analyst and strategist at Ecotrader.
In Europe, which sold its first supports last week (the 4,900/4,870 points of the EuroStoxx 50), the September lows 4,730 points They are still XX% of this Thursday’s closing levels.
“I would consider reducing exposure to the stock market a little if this level drops to the minimum and especially to the 4,675/4,700 pointswhich represents the 61.80/66% adjustment of the entire last rise from the August lows,” Cabrero explains.
And, according to the analyst, the EuroStoxx 50 has recently opened the door to “a broader consolidation phase, which does not surprise me because it is part of something more similar and proportionate to the last consolidation phase before the fall of August. .
Chinese Central Bank Earrings
In Asia, the region’s major indexes remained negative (with the Nikkei virtually flat) pending more details on the key legislative meeting in China that is expected to reveal supportive policies aimed at boosting the country’s weakening GDP growth. country.
And the markets are wondering if the measures of the meeting of the Standing 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.
