Wall Street closed with purchases this Thursday (Dow Jones:+0.92%; S&P500:+0.53%; Nasdaq:+0.22%), led by the Dow Jones and the S&P 500which has once again renewed its highs for the second consecutive day, encouraged by the words of donald trump at the Davos Forum, where he demanded lower interest rates. For its part, Nasdaq has traded downward for almost the entire day to turn around at the end and close with soft purchases, despite being penalized by the Electronic Arts collapse after cutting forecasts and falls of technology companies like Arm and Micronwhich have fallen sharply after leading gains in the previous days. Thus, the highlight of the day was served at the Davos Forum, where this Thursday, donald trump. Among other aspects, he has commented that he will demand a lower interest ratesprecisely in a context in which fewer cuts from the Federal Reserve are anticipated for this year. «I will demand that interest rates be lowered immediately. And in the same way, they should be falling all over the world,» Trump said. Trump's speech also included criticism of the policies of the European Union (EU)since it considers that they harm American companies and the country's economy. «From the United States' point of view, the EU treats us very, very unfairly, very badly. We have some very important complaints with the EU. They make it very difficult to bring products to Europe and yet they hope to sell and do sell their products in the United States. So we have hundreds of billions of dollars of deficit with the EU and no one is happy about it. And we are going to do something about it,» he said.
THE MARKET RECEIVES TRUMP WITH ENCOURAGEMENT
«The market is evolving extremely well. Trump is focused on immigrationwhich is the most populist part of his policy and the least feasible in practice, in addition to being the one that least affects the market in the short term. That's why the market fits it well and, backed by corporate results for the fourth quarter whose balance is improving little by little, it rebounds even with a certain complacency,» they assess from Bankinter. «But the good results and Trump's not very aggressive landing in what really affects the market in the short term (tariffs, taxes, deregulation) allow stocks to rally and rebound, with the peace of mind that the reduction in perceived risk with respect to the context stabilizes the IRR of the bonds at acceptable levels; and that is the key to the high liquidity being put into positive gear, with a buying tone,» they add. However, these analysts estimate that Friday will be a «weak day, without relevant deterioration, but without desire, because The gaze turns to next weekwhich is frankly important.» We remember that the Federal Reserve will hold its monetary policy meeting next Wednesday, January 29, and will not meet again until March 19. The macro agenda has included the weekly unemployment datawhich have shown an increase in unemployment claims greater than expected.
TECHNICAL ANALYSIS OF THE S&P 500
He S&P 500 played this Wednesday intraday highs. And the increases in the North American selective since last January 13 have been very notable. «It has appreciated about 5% from the session's lows. These notable gains have helped it overcome the key short-term resistance at 6,049 points. For the next sessions, everything makes us think about a extension of the increases to the level of 6,099 points, historical highs«, indicates César Nuez, technical analyst at 'BitcoinDynamic'. «Everything seems to indicate that it could exceed this price level. This would leave the index, once again, on a free rise, with a clear path so that we could end up seeing a extension of the increases to the level of 6,400 points. We will not see a sign of weakness as long as it continues trading above the 5,773 pointsminimums of the last correction that allowed it to cover the bullish gap at the beginning of November,» he adds.
COMPANIES AND OTHER MARKETS
At the business level, Electronic Arts has plummeted by 16.70% after cut your forecasts given the weakness of its 'Global Football' division. In other markets, oil West Texas has dropped 1.55% ($74.27) and the Brent has fallen 1.43% ($77.88). Crude oil has suffered after Trump's request to OPEC for lower prices. For his part, the euro has appreciated 0.10% ($1.0418), and the ounce of gold has decreased by 0.34% ($2,761). Furthermore, the 10-year American bond yield has revalued to 4.648% and the bitcoin has lost 1.22% ($103,280).