The Ibex bypasses Brexit: it adds a 0.71% and it conquers the 8.900 points

Investors are optimistic that the Brexit negotiation period is likely to be extended and that the referendum is repeated and, in this sense, it seems that they have preferred to see 'the glass half full' rather than 'half empty'. In fact, one of the most likely options now is to extend the term to make the Brexit effective in four months and it seems that this reassures the market, although it may be a poor excuse to explain the calm of the investors in the face of such chaos.

The possibility of repeating the referendum also sounds increasingly plausible, which also encourages the markets. For the moment, Theresa May is facing this Wednesday a motion of censure that she will most likely win. Then, she has until Monday to present a plan B to Parliament.

"The two most likely scenarios are that eventually the plan of May be approved at a later stage, as the pressure increases on politicians, or a second referendum, but British politicians need to reach an agreement before we know where to go. It runs the United Kingdom, "say the Danske Bank experts in their daily report.

The behavior of the pound is also being highly commented as it has risen after the defeat of May's plan. "Forex traders have opted for an optimistic stance. (...) Instead of seeing what has happened as a further step towards a Brexit without agreement, they see it as a movement towards the extension of Article 50 and the delay of the Brexit, "explains Jasper Lawler, head of analysis at London Capital Group.

The governor of the Bank of England, Mark Carney, has also acknowledged that the market is bypassing that Brexit could be delayed.

BUSINESS

Santander is taking over the business news in Spain. The entity was aware today its involvement in the Popular case, since the judge considers that it has inherited the criminal responsibility of the actions of Ron and Saracho.

In addition, yesterday at the close of the market it announced its refusal to sign Andrea Orcel as chief executive, given that this finally entails costs that the entity is not willing to assume. Santander fell 2.45% on Wall Street on Tuesday. Today, in Spain has come to quote with a decline of 1%, but ended with a rise of 0.99%.

News from banks in Spain leaves much to be desired in terms of their credibility. The resignation of Orcel is a disappointment and also surprising for the fact that his signing was announced without 'tying' all the details that have led to its rejections.

Regarding Brexit, Sabadell (4.80%) and IAG (3.75%), two of the companies in the Spanish market most exposed to the United Kingdom, celebrate on the stock exchange the defeat of May and have been two of the three most bullish values, together with Cie Automotive (3.85%). In the case of IAG, the fact that there is finally an extension to Brexit would give it more time to design a plan that Brussels accepts to be able to continue operating in the European space.

On the opposite side of the table, Red Eléctrica (-2.13%) and Enagás (-1.71%) are the two most punished securities after the Morgan Stanley sales. The US bank has cut the price target of the first to 24.70 euros from 26 euros, with a neutral rating. On Red Eléctrica, the advice has been lowered to underweight from the same as the market and the target price to 18.30 from 18.60 euros. In both cases, the new target prices are below the current price of quotation.

OTHER MARKETS

It should be noted that in the debt market, risk premiums are falling, with special force in the countries of the European periphery. Premiums have dropped by 4% in Spain, Portugal and Italy at the close of the Spanish market.

In the commodities market, the Brent barrel, a benchmark in Europe, has lost 0.08% to 60.59 dollars. Meanwhile, in the currency market, the euro has depreciated, but maintains the 1,14 dollars, up to 1,1401 dollars.

TECHNICAL ANALYSIS

"The Ibex closes the ecuador of the week in the middle of resistance zone, the approximately 8.900 points, we will see if we are finally able to close with ease to start towards the resistance which presents in the 9.150 putos: the bearish guideline that unites the impeccable highs decreasing since last May, "says José María Rodríguez, analyst at Bolsamanía.

"Even if the index is aimed at this resistance, we should know that we are still talking about a rebound within an impeccable downtrend, and another thing will be whether the price is finally able to close comfortably above the resistance of 9,265 points maximum of November and December ", adds the analyst.