Comment and analysis of the closing of the stock market (Thursday, November 7, 2019)



Commercial optimism invites you to invest in risky assets

The approach of positions between China and the US It has had a new episode today, as both countries have dropped that they will gradually withdraw tariffs. Waiting to know the date of the signing of phase 1 of the agreement, the markets continue to show their optimism.

Today there has been a wave of purchases in the exchanges, and sales in safe assets as fixed income. In this context, an active refuge such as gold, which today has yielded -2% to 1,460 dollars / ounce, loses its appeal.

The Ibex has marked highs in April after a 0.52% rise that covers it to 9,447 points. While the Paris and Milan stock exchanges have registered similar advances, the Frankfurt one has stood out by adding 0.83% driven by Lufthansa and Siemens.

In U.S.A. Investors continue to ignore the noise about the possible impeachment about Donald Trump and focus on the novelties of the trade war. After the respite that occurred in Wednesday's session, the Wall Street exchanges set new highs a few hours after closing.

Arcelormittal (+ 6.68%) and Amadeus (-3.65%) have celebrated, and in what way, the presentation of results. In the case of the steelmaker, this reaction is meritorious considering that it has announced losses of 572 Mn $ in the first 9 months of the year and that it has revised down its estimates of steel demand. In the case of Amadeus, investors have celebrated the 11.9% increase in their profit and the good evolution of the technology solutions segment.

Optimism in commercial matters has infected other values ​​linked to raw materials such as Ence (+ 6.73%) or Acerinox (+ 1.88%), in a generalized rebound session for the banking sector. For its part, Siemens Gamesa has rebounded 3.70% infected by the advances of 10% of its competitor Vestas. Enagás has added 2.36% when it is taken for granted that the CNMC will soften the cut initially raised to the remuneration of gas. In the Continuous Market, the 5% rise in BME has been highlighted amid rumors about a possible takeover bid by the Euronext stock trader.

The lower interest of investors in fixed income is translating into increases in profitability. The ten-year Spanish bond marks July highs at 0.38% and the German at -0.24%. The US Scale up to 1.92%.


Authors:

Andrea Aragoneses of Andrea
Self Bank Analyst
Content, products and services Development Department

Felipe López-Gálvez, MFIA
Self Bank Analyst
Development of content, products and services
Marketing department

Victoria Tower
Self Bank Analyst
Responsible for development of content, products and services

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