Ibex 35 looks towards 10,500 under pressure from Wall Street

The Ibex was not an exception, losing the 10,600 point level, finishing at 10,524 points with a correction of 1.19%. Among the biggest fallers today was Grifols with a loss of 3.01%, followed by Caixabank (-2.46%), Inditex (-2.40%) and Tecnicas Reunidas (-2.20%). Among those which were higher were Indra (+0.51%), Cellnex (+0.30%), Colonial (+0.33%).

As well as Inditex, other heavyweights fell, such as Iberdrola by 0.07%, Telefonica 0.60%, Santander 0.89% and BBVA 1.89%.

The reporting of company results for the first quarter will be the most important event of the week until Mario Draghi’s speech on Thursday. In Spain, on Tuesday there were preliminary results for Enagas (-0.9%), which earned 25.6% more in the first quarter due to the consolidation of GNL Quintero. Novartis (+1.5%) reported revenue of $2.87bn in the second quarter. The firm added it sees potential for various highly innovative products. Ericsson tanked (-14%) after reporting losses of 105m in the second quarter.

In other news, Asian markets saw losses in the morning (-0.55%) while the dollar sank after Donald Trump’s latest defeat. The euro/dollar is now at $1.1580 (+0.9%).

TECHNICAL ANALYSIS

“The move downwards in the last two sessions does little but confirm to us what we feared, that the correction has not yet finished. In fact for the last few weeks we have been making reference to significant lows from the end of April both in the Ibex and European neighbours. We added that if we had filled in its entirety, the rest of the European indices would arrive at the doors of these gaps,” said José María Rodríguez.