Flat close for an Ibex supported by Repsol but burdened by the electric sector

The Ibex 35 closed flat (-0.04%, 9,098.90 points), in a session that has finally been a transition. The index has marked an intraday high of 9,199 in the first part of the day, thanks to the change of heart from Federal Reserve Chairman Jerome Powell, who spoke on Wednesday on Wall Street and led to increases of more than 2% ont the other side of the Atlantic. However, the initial momentum has faded as the session progressed.

IBEX 35

11.656,600
0,39%

From the business point of view, investors have been focused on BBVA (+ 0.24%) following the appointment of Onur Genç as CEO. This designation assumes that the entity reaffirms its commitment to Turkey, a market that does not go through its best moment.

In addition, Telefónica (+ 0.33%) has presented its new strategic plan 'Reconecta'. Its president, José María Álvarez-Pallete, has opted for growth and profitability, confirming its commitment to "simplifying assets with a focus on increasing the return on capital employed."

Although one of the most bullish values has been the oil company Repsol (+ 2.02%). Oil has reached new annual minimums, although it has been turned around. Brent oil advanced 1.1% at the close of European markets, up to 59.43 dollars. There are rumors that OPEC and its partners will reveal a production cut next week, but Saudi Arabia has already said it will not face this cut alone.

Other bullish values of the Ibex were CIE Automotive (+ 2.32%), ArcelorMittal (+ 2.03%), Indra (+ 1.53%) and CaixaBank (+ 1.32%).

In the negative, DIA (-9.24%) has collapsed again. Bolsamania has reported that Norges Bank has increased the number of shares it holds on loan to bearish investors. But the main ballasts for the Ibex have been electricity companies such as Naturgy (-1.81%), Endesa (-1.63%) and Iberdrola (-1.4%), in addition to Inditex (-0.29%). and Santander (-0.26%).

In Germany, Deutsche Bank has fallen by 3% after learning that the police have investigated its headquarters in Germany on suspicion of money laundering.

POWELL SPEECH

Powell's more 'dovish' speech, which curiously occurs at a time when he is being pressured by Donald Trump to moderate rate hikes, has boosted Wall Street and led to declines in the dollar.

"For risky assets, what Powell said is important because he stresses that the Fed has become more dependent on data and is no longer on autopilot, if the global economy weakens deu to the trade war with China and starts affecting the US economy, the Fed is ready to change course, "say the experts at Danske Bank.

Danske, however, warn of the risk of 'overinterpreting' Powell's comments and point out that it can not be ruled out that he will continue with his plan of increases: one more in December and another two next year, in March and June.

On the other hand, experts remember that one of the reasons why stocks fell sharply in October was precisely because Powell was then more aggressive and there was fear that the Fed raised rates four times in 12 months. "Investors are now much less afraid of a more restrictive monetary policy," says David Madden, chief analyst at CMC Markets in London.

Powell is one of the protagonists of the day. The other two are still Trump and the Chinese president, Xi Jinping, who has already completed his visit to Spain and heads to Argentina, where he will meet with the US president on Saturday. Likewise, there is still talk regarding Italy and Brexit. Mark Carney, governor of the Bank of England, spoke on Wednesday and warned that a "disorderly" Brexit could cause the economy to fall by 8% and the pound to fall by 25%.

Finally, regarding macro data, the CPI of Spain collapses in November to 1.7% for electricity and gasoline. In addition, retail sales soared in our country in October by 4.7%. In Germany, unemployment falls to record lows in November.

TECHNICAL ANALYSIS OF THE IBEX 35

"The Ibex closes the penultimate session in November far from the highs of the day (9,199) and the resistance gates of the 9,232 points (last falling maximum) .In the shortest term we should know that we have a bullish gap at 8,917 points that can be filled (at least partially) in the next sessions, and above we have the 9,232 points, "says José María Rodríguez, an analyst at Bolsamanía.

"This level seems important, in theory, as it is the seventh consecutive maximum from the maximum of May (10,291) and as we have been commenting in recent days, if we want to leave the door open to the possibility that we are facing something more than a simple rebound we need, at least, to leave behind the resistance that we have in the last decreasing maximum, let's hope that the maximum of this Thursday (9,199) is not the eighth maximum decreasing ", concludes this expert.