Fed Cuts: New Boost for the Ibex 35?
The recent 50 basis point reduction by the Federal Reserve (Fed) has had a significant impact on global financial markets, including the Ibex 35. This cut, which comes on top of 18 similar occasions since the turn of the century, seeks to stimulate the economy in times of economic uncertainty. For the Ibex 35, the Fed's move has generated positive momentum.
The Spanish index has shown strength, and this effect is expected to spread to other indices such as the Ibex Medium and Small Caps, bringing them closer to their annual highs. The Ibex Small Caps, in particular, is close to reaching a crucial upward trend line, which could trigger a significant rally in Spanish equities.
The Fed's monetary policy, by cutting interest rates, not only affects the US dollar, but also has a knock-on effect on international stock markets. In Europe, the EuroStoxx 50 is approaching key resistance, while in the US, indices such as the S&P 500 and the Dow Jones could surpass their annual highs, driven by the same monetary policy that favors stock markets.
Currently, the IBEX35, is currently at highs again at 11,881.43 points with a strong trading zone between 11,195.46 points and 10,931.36 points respectively, and initial support at 10,491.19 points. The next support rests at the upper zone of the indicated trading range at 11,195.46 points. The RSI shows an overbought level of 77.16%, evidencing the positive impact of the Fed's decisions on the Spanish spread. The upcoming Spanish bond auctions and Schnabel's speech will be crucial to determine the future direction. If the trend continues, we could see an upward extension, although Fibonacci projections suggest that the index may not exceed 11,906 points (161.80% of the original momentum).
In summary, the Fed's rate cut is positively influencing the Ibex 35, providing a favorable context for the Spanish index, along with other European and US indices, to approach its highs and experience a potential rally.
Ion Jauregui - Analyst ActivTrades
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
The Spanish index has shown strength, and this effect is expected to spread to other indices such as the Ibex Medium and Small Caps, bringing them closer to their annual highs. The Ibex Small Caps, in particular, is close to reaching a crucial upward trend line, which could trigger a significant rally in Spanish equities.
The Fed's monetary policy, by cutting interest rates, not only affects the US dollar, but also has a knock-on effect on international stock markets. In Europe, the EuroStoxx 50 is approaching key resistance, while in the US, indices such as the S&P 500 and the Dow Jones could surpass their annual highs, driven by the same monetary policy that favors stock markets.
Currently, the IBEX35, is currently at highs again at 11,881.43 points with a strong trading zone between 11,195.46 points and 10,931.36 points respectively, and initial support at 10,491.19 points. The next support rests at the upper zone of the indicated trading range at 11,195.46 points. The RSI shows an overbought level of 77.16%, evidencing the positive impact of the Fed's decisions on the Spanish spread. The upcoming Spanish bond auctions and Schnabel's speech will be crucial to determine the future direction. If the trend continues, we could see an upward extension, although Fibonacci projections suggest that the index may not exceed 11,906 points (161.80% of the original momentum).
In summary, the Fed's rate cut is positively influencing the Ibex 35, providing a favorable context for the Spanish index, along with other European and US indices, to approach its highs and experience a potential rally.
Ion Jauregui - Analyst ActivTrades
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.