While the Ibex 35 has not yet reached its annual maximums set at 9,310 points, the rest of the major European indices such as the EURO STOXX 50, the German Dax and the French CAC 40 have reached their all-time highs this month. These figures came on Wednesday, November 3, when the The US Federal Reserve said it was in no rush to raise interest rateswhile the Bank of England left monetary policy unchanged, surprising investors who were expecting a rate hike. ECB President Christine Lagarde also assured markets that she does not expect a rate hike in 2022 in the eurozone.
On November 5 the announcement of the Pfizer pill was known, Paxlovid, which in two of the three phases of clinical trials has shown an efficacy of 89% in reducing the risk of hospitalization and death of those infected by Covid, according to the company. Added to this optimistic scenario is the strength shown by the US labor market by surprising above the estimates of job creation with 531,000 payrolls in October and an unemployment rate of 4.6%, falling by two tenths.
Inflation, for its part, does not give truce. Inflation in the United States shot up in October at a year-on-year rate to 6.2% and core inflation reached 4.6%, the highest since December 1990. This Wednesday, Germany also recorded the largest rise in prices in the country since August 1993. However, this scenario is favorable for equities due to the lack of alternatives that long-term fixed income supposes in this inflationary context. Gold rebounds to five-month highs and bitcoin is also on the free rise.
“The situation in Europe is on an upward trend, new historical highs in the Dax, in the CAC 40 and in the EURO STOXX 50. What has happened in the Ibex 35 is also important when trading in the resistance zone of 9,000- 9,042 points, but with the candle of November 1 the maximum of 9,198.10 was reached and since then it has stopped and seems to be making a symmetrical triangle. Normally the breaking of the triangles is a bit unpredictable, what usually happens although it does not always happen is that the rupture is violent. If it were to break upwards, it is likely that it would go for 9,310 points before continuing the upward stretch ”, explains the Investment Strategies trading analyst, Mónica Triana.
Faced with the helpful idea that US equities are expensive, Spanish investors have the option of building portfolios in Old Continent stocks, following trends and also doing so without currency risk. Where are there opportunities on the European stock exchanges? According to the technical indicators of Investment Strategies in the Euro Stoxx 50 there are seven values that present an outstanding graph taking into account their medium and long-term trend, their moment, their volume and their volatility: Daimler, Infineon, Airbus, Adyen, Intesa Sanpaolo, ASML and ING.
In the case of the French Cac 40 there are up to ten ‘outstanding’ companies for technical analysis such as Michelin, Teleperformance, Publicis, Saint-Gobain, ArcelorMittal, Airbus, Capgemini, Hermes, Legrand and STMicroelectronics. In the German Dax they have a score of nine or higher companies such as the aforementioned Daimler and Infineon, in addition to Deutsche Bank. In the case of the Ibex 35, the indicators show that the technical strength is in Acerinox, Indra, Acciona and ArcelorMittal.
