The Ibex 35 has recorded losses of 0.55% and just saved the 9,600 points (9,606.50) burdened by the poor performance of large securities such as Inditex, BBVA and Telefónica.
- 11.656,600
- 0,39%
The most outstanding values of the selective were CIE Automotive (+ 3.74%) Red Eléctrica (+ 1.4%) and Siemens Gamesa (+ 1.12%). The wind turbine manufacturer is the best positioned to take advantage of the development of future offshore wind farms, according to Citi experts.
Also recording earnings are (Arcelor (+ 1.03%) and DIA (+ 1.21%) .The supermarket chain rose another 4.83% on the weekly start, which adds to 4.82% on Friday. After hearing the news of the resignation of its CEO, Ricardo Currás, will be replaced by Antonio Coto, rumors about a possible takeover of the LetterOne fund of Mikhail Fridman, the largest shareholder with 25% of the capital, have continued to boost the value.
On the other hand, the most bearish value was Inditex, which has dropped 1.8% after receiving a negative recommendation from RBC. In addition, another heavyweight of the selective, BBVA, has lost 1.45% after a reduction in the target price by Credit Suisse.
Santander was down 0.2% after being fined with almost half a million euros for bad mortgage practices with customers with fewer resources. In addition, Telefonica falls by 0.7% while in the UK continues the debate on a hard Brexit.
NAFTA, CHINA AND TRUMP
All in all, the rest of European places are dressed in green this Tuesday (Cac 40 + 0.16%, Dax 30 + 0.26%, Ftse 100 + 0.71% and Psi 20 + 0.34%), after Mexico cancelled the good prospects of reaching a new agreement for the North American Free Trade Agreement (NAFTA). Both countrie reached a bilateral agreement on Monday to renew the treaty.
But, in order for it to be able to move forward, the third part of it, Canada, must join the negotiations. Something that, according to Reuters, citing a senior US official, is expected to happen in the coming days.
"Trump, finally! He encouraged the markets last night when he made the show in the Oval Office of the White House announcing the new trade agreement with Mexico. This agreement has an initial validity of 16 years that can be reviewed every 6 years and is still pending approval in the parliaments and congress of both countries, "says analyst Ramon Morell.
And the appetite for risk that has been stoked after the good news pushed all currencies against the dollar, which remains near its lows in almost a month against the euro, caressing the $ 1.17. The Mexican peso, on the other hand, retreats from a maximum of more than 15 days at 18.60 pesos per dollar and the Canadian dollar also recoils after the maximum of more than two months on Monday at 1.2950 per dollar.
Still in the currency market, investors do not lose sight of the Turkish lira, which has noticed how volatility has increased after several days of calm, due to the national holiday. On Monday, it plummeted to a minimum of 10 days, from where it recovered, although it resumes the decline and yields 1.5%.
The yuan, meanwhile, remains close to its highest level since early August, after announcing that the People's Bank of China has implemented changes in the mechanism by which it fixes its daily exchange against the dollar. News that quickly aroused Donald Trump's response, which he again charged against the Asian country for "manipulating his currency". The tensions between both countries are accelerating again after it was revealed that Beijing presented on Monday a new case with the World Trade Organization (WTO) against the US for the latest tariffs on Chinese products valued at $16bn.
TECHNICAL ANALYSIS OF THE IBEX 35
"This Tuesday session has no technical implications whatsoever, if at all, the minimums of this Tuesday and yesterday correspond to the 9,600 points, before resistance and now support, if you remember, sessions ago we talked about the bearish gap of the 9,602 points that closed this Monday and now it is proving to be support ", affirms José María Rodríguez, analyst at Bolsamania.
"As for the rest, there is nothing until the 9,750 points area, which is where we find the next resistance (the bearish hole of the session on August 10.) Now, the rebound may have its days counted as we continue we see weakness in securities such as BBVA, Santander and again Telefónica, so we have again the Turkish lira at 7.31 Lira / euros (closer at the historical lows at 8,013 liras, "adds this expert."
Santander is close to the annual minimums without giving the slightest sign of strength and above we have our operator approaching dangerously close to the support of 7,16 euros. Drilling annual minimums would be a real jug of cold water for our operator and therefore for our Ibex 35. Meanwhile, the rest of Europe (Dax, Euro Stoxx 50 and Cac 40) continue, little by little, approaching resistances and Wall Street in all time highs ", concludes Rodriguez.
