Ibex 35 waits in “no man’s land” for the outcome of the duel between Kamala Harris and Donald Trump
The futures market is looking for a higher opening on European stock markets as well as on Wall Street, albeit with slight gains in market fundamentals. On Tuesday, November 5th, investors will focus their attention on US presidential elections took place and where the citizens of the country are called choose your next leader. With surveys that practically promote connection between Kamala Harris and Donald TrumpThe election results will coincide with the US Federal Reserve meeting this Thursday.
However, Tuesday will also feature the latest macroeconomic data known in China. The Asian stock market is carried away by growth after the publication evolution of the service sector in Chinawhich was expanding at its fastest rate since July. Similarly, the country’s authorities are considering their proposal aimed at reducing the financial burden on local administrations to support the economy as a whole. Using this data, The continental Csi 300 index rose almost 1.9% while the Japanese Nikkei adds 1.45%.
Given investors’ attention to the US elections, Capricorn 35 accumulate several sessions stuck below 12,000 points and without crossing this technical link. The Spanish selective consolidated positions sideways for twenty-seven sessions between the support of 11,560/11,600 points and the resistance zone of 12,000 integers. “No changes within bullish situation on the Spanish selective until it loses support at 11,560/11,600 pips, which is the yellow line or level to watch in the short term,” the technical advisor commented ecotraderJoan Cabrero. Thus, from the point of view of technical analysis, Ibex 35 is in the middle of a sideways phase, which can be called no man’s land where neither bears nor bulls have control.
“Transfer of title support 11,560/11,600 points will not be at all optimistic for Spanish shares, opening the door from now on to a possible larger consolidation that in the worst case could reach 10,900/11,000 points,” says an expert from the investor portal. elEconomista.es. However, there will be intermediate support around 11,140 points, which are the September lows and which may stop the fall before you see those 11,000 points. For buying on the Spanish stock market, the Ecotrader advisor indicates this area between 11,000 and 11,138 points to place buy orders. For more aggressive options this can be done earlier using stop protection at the level of 11,560/11,600 points.
The US dollar was also in a conditional state during election campaign. While the Federal Reserve’s monetary policy has larger implications for the currency, the truth is that the proposals of Democratic candidate Kamala Harris and Republican Donald Trump have different implications for the currency most used by the market. The dollar regained ground against the next ten most important currencies on the market. And after the September lows, the dollar leads the basket of major currencies by 3.3% and is at 1% increase to return to highest levels of the yearon average against currencies such as the euro, pound, Swiss franc or Japanese yen.
The greatest difference is visible in crossover with the Japanese yen. The Japanese currency is one of the assets that suffered the most from the US elections. A priori, Kamala Harris’ victory will benefit the yen if the US Federal Reserve continues the action plan begun during the presidency of Joe Biden. On the other hand, according to Bloomberg, a Republican victory could be more focused on propping up the U.S. economy with tariffs on China, among other measures that could make it more difficult for the market to lower interest rates. From the highs the yen reached this year, which saw a change of 140 yen per dollar, the Japanese currency has fallen more than 7.7% to current levels (152.3 yen per dollar).
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