Ibex falls 0.15% despite Inditex's strong increases

Inditex has announced an improvement in profit of 2%, while the rise in sales has also been 2%, to €5,6bn euros. The company has specified that these figures have been characterized by "the strong impact of currencies."

"(Inditex) has published results of the fiscal first quarter below the expected sales but better in gross margin and operating costs, so the profit figure after taxes is higher than we expected," experts say at Sabadell Bank.

However, the increases of the Zara owner, together with those of other values ​​such as IAG (+ 2.04%) or Amadeus (+ 1.9%), have not been able to compensate the losses of the rest of the market. In red, Ferrovial (-1,94%), ACS (-1,6%) and BBVA (-1,45%) stood out. In addition, banks have also slowed the advance of the selective, with all banks in red (Sabadell: -0.99%, Santander: -0.97%, CaixaBank: -0.88%, Bankia: -0.14% , Bankinter: -0.23%).

In the main board Duro Felguera made the news (+ 11.26%) after anticipating a profit of €170m for 2018, in contrast to the losses of 254.5m recorded last year.

Also MásMóvil (-4.75%) is news this Wednesday after it reacted to the launch of the O2 brand in Spain. Now, the operator begins to notice it on the stock exchange, and is already preparing to try to retain its customers against the "simple premium" of Telefónica.

In Europe, the Ibex has set itself apart from the other major indexes, closing this Wednesday with slight rises. The Dax 30 has led the advances by climbing close to 0.4%.

THE MARKET WAITS FOR THE FED

Meanwhile investors are wary as they await for the Fed to confirm a widely expected rate hike of 25 basis points to 1.75% -2%. Now, experts say, begins the most complicated task for its president, Jerome Powell, which will determine, taking into account the pace of growth of the US economy, if raising rates three times this year or if, on the contrary, it opts for four rate hikes, as many experts already anticipate (another in September and another in December).

"Today all the attention of the financial markets will be on the meeting of the US Fed, where it is taken for granted that it will raise its benchmark interest rates by a quarter of a percentage point, and investors will analyze the possible changes in the language of the Fed statement, in the update of the perspectives of the members of the Fed regarding the economy and, especially, regarding the future path of interest rates and later in the statements made by its president, Jerome Powell, in the press conference ", point out the experts of Link Securities in their daily report.

"To point out that in recent weeks the expectations of the financial markets have increased that the Fed will end up raising its reference interest rates four times, instead of the three times that were anticipated at the beginning of the year", these analysts add.

"We expect the Fed to raise rates to the 1.75% -2.00% range without major changes in the point diagram," the statement from the Fed can move to "monetary policy is modestly accommodative" (modestly it is the new word), which does not mean a change of strategy, "say the analysts of Danske Bank.

As for other appointments on the day's agenda, in Spain the CPI rose 2.1% in May, one tenth more than expected. In the United Kingdom, the CPI remained at 2.4% in May. In the Euro Zone, industrial production fell by 0.9% in April.

TECHNICAL ANALYSIS

José María Rodríguez, technical analyst of Bolsamanía, defines this day as a "deceptive session" due to the strong volatility of Inditex, although he points out that "the technical implications of today's session are nil." "We do not dare with the resistance of 9,950-9,960 points (61.8% retracement of the previous fall), but there is no desire to set course to support the 9,760 points," he explains.

On the 'blue chips', the analyst highlights the weakness in banks, especially in BBVA and Santander. Telefónica on the other hand is listing very close to the annual minimums". "If it Inditex were not doing so well in recent weeks, we would be considerably lower (from the end of May it is revalued by 10%)", adds the expert. "In any case, the control areas in terms of the medium term in our selective are at 9,330 points (annual minimum), below, and 10,290-10,300 points as resistance", and adds that "until we get out of there we will not have any signal in terms of medium term ".

As for the European stock exchanges, he assures that "they remain calm" and far from the first important supports, the minimums of the end of May.