- At 8:48 a.m., the future of the Ibex 35 fell by 0.48% to 7,536 points
- Solaria loses more than 14% after the results
- Real estate companies plunge on the stock market
The start of the week is marked by the results of the Italian elections of yesterday, Sunday, where Giorgia Meloni won, being able to form a government with an absolute majority with the League and Forza Italia, led by Matteo Salvini and Silvio Berlusconi. In this way, the right-wing parties will now have the challenge of dealing with the serious problems of the Italian economy.
The Italians’ decision leaves the Italian bond spread at 237 basis points (bps) against the Bund, with the dangerous barrier being 250bps, which would add further headaches to the ECB. The Italian 10-year bond yield is trading at 4.385%.
The pound sterling (GBP) suffered a severe correction against the rest of the currencies after the announcement of the government’s tax cut, down more than 6% since last Friday, trading slightly below $1.06 today. The FTSE100 He stayed at the gates of 7000 points.
The IBEX 35
closed Friday with further lowsin a session rich in twists and turns on the European markets but which once again left a new low in the Spanish selective around 7,527 points, remaining at the gates of a complicated zone like 7,500 points.
European exchanges should look for new sales, since the results of Italy, added to the fear of investors before the arrival of an economic slowdown, point to another turbulent week. However, we will continue to monitor disputes between sellers and buyers in important areas of the stocks.
Within the Spanish selective, patch of the week was taken by Solaria (-14.44%), whose stocks abandoned the sideways range after disappointing results. Their titles will seek to hold the 17 eurosafter falling last Friday to 16.26 euros per share.
Griffols (-14.22%) was another company that suffered over the past week, remaining at the gates of 10 euros per share after having left more than 45% in the last 3 months. Now, the next major support is around 8.28 euros.
Another of the sectors affected by the rise in rates is real estatewith a market that has once again punished Colonial(-11.66%) and Merlin Properties (-11.75%), with both stocks again setting new lows, in particular Colonial, closing at 5 euros but even giving up said support during the session, where the next support is found at 4.50 euros.
Cellnex Telecom (-8.71%) does not raise its head and establishes new annual minimanow setting the support target at 30.90 euros, a level not seen since March 2020. For its part, Repsol (-5.06%) lost the long-term bullish guideline after strong selling in the oil market, where tensions between the EU and Russia add greater volatility. Thus, the Spanish oil company is looking at 11 euros per share, after the barrel Brent fell to $84.70.
Finally, today we will have relevant macroeconomic data, among which we highlight:
- 10:00 a.m. -> Ifo Business Confidence Index in Germany (Sept.)
- 3:00 p.m. -> Statements by Lagarde, President of the ECB
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How to take advantage of the opportunities of this market? Example of operation.
To illustrate how to trade in the example we will use the Ibex 35. At IG, we could trade this market with CFDs, barriers, vanilla options and Turbo24. We will retain the latter for the example, since it is a product quoted on a 24-hour market, which allows us to adapt the leverage effect of our operations and to be covered against gaps market, the minimum purchase being a Turbo24 (equivalent to €0.01 per point).
If the first scenario is confirmed and decided to enter bullish, we would buy 100 long Turbo24s (1 euro per point). Imagine that the Ibex 35 is trading, for example, at 7780 points. We could set the exit level or knock-out (guaranteed stop) 100 points below the entry price. If at that time the price of the Turbo24 is 1,234 euros, the guarantee (remuneration) requested will be 123.4 euros (100 Turbo24 x 1,234 euros for each Turbo24). The the leverage of this operation would be 60.20 times (7800 / 123.4 euros = 60.20 times). Additionally, it has the advantage that if there are increases in volatility when the market is closed that trigger our knockout, the trade is not closed. This implies that if when the spot market opens it does so in our direction, we will continue inside and we may continue to gain profits. If, on the other hand, when the market opens, it does so at a price equal to or higher than our knock-out price, we are assured of the maximum loss at that originally deposited amount, so we are hedged against deviations from the bull market.
If the second scenario is confirmed and decided to enter bassist, we would buy 100 short Turbo24s at an Ibex 35 price of 7,600 points. One could put the knockout level, for example, 100 points above the entry, with a Turbo24 price of 1,905 euros, the requested guarantee (retribution) will be 190.5 euros (100 Turbo24 x 1,905 euros for each Turbo24). The the leverage of this operation would be 39.89 times (7,600 / 165 euros = 39.89 times), retaining all the advantages explained above and protection against a negative balance in the event of gaps in bear markets.