European stock exchanges ended Thursday's session with pessimistic sentiment. The main Portuguese stock market index, PSI-20, was one of those that ended the trade down, with a fall of 0,93% to 4.049,52 points, to 4.121,94 points, making the sixth consecutive session in decline.
Penalizing the Lisbon square were mainly the devaluations of BCP, which fell 1,63%, to 0,08 euros, and Galp Energia, which fell 3,60%, to 7,98 euros. Securities such as Semapa and Navigator fell by more than 2%. Jerónimo Martins slid 0,62%. EDP Renováveis and Sonae stood out positively, rising 0,26% to 13,86 euros and 0,26% to 0,572 euros, respectively.
Observing the performance of the other European indices, it is noted that the German DAX fell 0,29%, the French CAC 40 slid 0,83%, the British FTSE 100 slipped 1,25%, the Dutch AEX lost 0,34%, the Spanish IBEX 35 fell 0,16% and the Italian FTSE MIB fell 0,12%. Euro Stoxx 50 was marked by a 0,64% devaluation.
Ramiro Loureiro, trader from Millennium bcp, clarifies that the fears surrounding the resurgence of coronavirus cases, which is leading to new restrictions on circulation in Europe, “and with the economic impact that may result, seem to generate discomfort for investors”. The BCP specialist also mentions that in Spain, banking is experiencing a dynamic M&A environment, “this time with rumors that Unicaja and Liberbank will be in talks for a possible merger”.
Bankinter analysts say that, for now, “the direction of the market in the medium term does not change, but catalysts are lacking and volatility increases. The key event in the near future will be the electoral outcome in the United States, possibly even more important than the vaccine ”.
In relation to the oil market, the price of 'black gold' is falling slightly. The value of WTI oil, produced in Texas, loses 0,15% to $ 39,87 a barrel, while Brent's barrel price is devaluing 0,36% to $ 41,62.
As for the foreign exchange market, the euro depreciates slightly 0,02% against the dollar, to $ 1,1658, and the pound gains 0,09% against the United States currency, to $ 1,2734.
XTB analysts say the euro-dollar is on a bearish trend this week. “Looking at the H4 interval, support at the 1,1580 level is a very important area where it also coincides with fibonacci levels, with a 50% retraction. If buyers are able to stop the falls in that area, a bullish movement could gain a new momentum. On the other hand, if there is a lower break, the downward movement may accelerate ”, they explain, in a market note.