Just had to see the beginning of this week on the stock with the previous one. Although fears that spooked investors still present, the declines in recent sessions have given way to a rebound in the market. Experts believe that is soon to be taken for the correctness and buried not rule out further declines, but also think that the declines may provide opportunities to build a portfolio of medium-term investment punished more attractive prices values. Today, the Dow closed the day with a rise of 0.88% to 10,193.5 points, doors to the 10,200 level.
The session has lacked almost entirely economic references (just inflation data in China), so it was a day of transition in which investors have digested the crash last week that left in annual losses to all European indices except the Italian FTSE MIB and alFTSE. All seats in the Old Continent closed in green with gains ranging from 1.3% of the French Cac up 2% of the German Dax. Only the Lisbon Stock Exchange expands its banking descents as ballast and yields 0.7%.
The Spanish index, the biggest gains have been those of Sacyr (+ 6.29%), Gamesa (+ 4.72%), IAG (+ 4.72%), OHL (+ 3.92%), Abengoa (+ 3.08%) and Tools Gathered (+ 2.96%), while no value has finished the day with losses. Oscar Germade responsible for technical analysis of Cortal Consors, believes that “short-term oversold caused a technical rebound could still extend more time to levels of 10,350 or 10,480 points.” However, he adds that “we need at least a double minimum for the upward movement that has triggered more reliably, so do not rule out revisiting the 9,946 points once won the rebound height.”
The trade war between Russia and the EuropeanUnion by the attitude of that country in the Ukrainian conflict, doubts over European recovery and increased tension in Iraq for the progress of the Islamic State and the military intervention of the United States are clouding the horizon markets. Therefore, analysts recommend caution as investors will very aware of the evolution of these fronts. Fernando Hernandez, managing director Inversis Bank, argues that “it seems unlikely that the market rises for the remainder of August. There will be more nervous and very little trading volume, which exacerbates the movements. ” Hernandez stands at 9,850 points level to which the Dow could fall in the short term.
One of the main references of this week will be the release Thursday of the GDP of Germany and the euro area in the second quarter. After Italy into recession, if these data defraud investors, disappointment could lead to doubts, and with them the drops, return to the markets.
So, it would be premature say goodbye to the stock market correction. Nevertheless, the last drops leave interesting opportunities for investors, always with the caveat that you can not rule that falls continue. “The medium-term outlook is good and this area can be interesting to go coming priced 10% lower average than a month and a half ago,” Jesus de Blas, Crédit Agricole analyst adds. This expert is set comoMapfre, Telefonica and Repsol values.
“The corrective move has left some buying opportunities for the medium to long term, as in the case of OHL, Jazztel, IAG and Techniques Gathered “adds Germade. “However, as we expect a relapse would do fragmented additions, and would take advantage falls to be increasing positions,” he recalls.
In the secondary debt market, the interest of the Spanish ten-year bond down to 2.53%, with the risk premium on the 147 basis points. The bund German has risen slightly to 1.05%, near historical lows. Today, the German Treasury has placed 1,431 million euros in debt six months with a negative interest rate of -0.0026. That is, investors do not get no return on these bonds, but they will pay for them. In a test that lasts nervousness by geopolitical tensions in the market, the coverage ratio of this auction was 2.3 times.
The euro, meanwhile, lost again the level of $ 1.34 and drops to 1,33x units of the greenback.
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