The Ibex (-0.2%) loses the 9,000 points weighed down by the nervousness of the banks

It was expected that the decision of the Supreme Court would be known yesterday, Monday, November 5. However, it was delayed until this Tuesday and, at the close of the market, the final decision is still unknown. With it, it is expected that the Supreme Court will definitely dictate whether the Tax on Documented Legal Acts (AJD) in the constitution of a mortgage must be paid by the client or by the bank. If you opt for the second option, as you did last month, investors are especially aware of the retroactivity or not of this decision.

While waiting for the sentence, the Minister of Finance, María Jesús Montero, has estimated the impact for financial institutions of the possible failure of the TS in 5,000 million euros.

FALLS AND INCREASES

Apart from banking, large stocks such as Inditex (-1.07%) or Telefonica (-1.20%) fell sharply on Tuesday. However, the value that has dropped the most was DIA (-7.05%), unlike the last session, where it was the most bullish. Deutsche Bank analysts have cut their target price on Tuesday to 0.8 euros per share (closed the session at 0.76 euros).

In contrast, the increases were led by Siemens Gamesa (+ 14.50%), after having reported results that show a net benefit (without comparison) of 70 million in its fiscal year 2018 (between October and September) and a fall in sales of 17%. Experts stress the strength of orders.

The other most bullish securities were Mediaset España (+ 4.69%), after leading the hearings in October, Naturgy (+ 2.74%) and Endesa (+ 2.68%), after presenting yesterday at the close of the market a net profit of 1,1bn euros until September.

TECHNICAL ANALYSIS

"Good is what ends well," says José María Rodríguez, technical analyst at Bolsamanía. "Failing to know the important decision of the Supreme Court, which will surely cause a strong movement in the bank and therefore in the Ibex, we can say that the movement on Tuesday is not all bad because it closes close to the maximum of the session after filling the bullish gap (support) this Friday, "he explains.

This means that "if it were not for all the noise that is in the market in this regard, the falls of today's session would be absolutely normal, the minimum that can be asked to the indexes after bouncing 5% from the minimum of finals October, "he adds.

"Otherwise everything remains the same: we quoted in no man's zone, between the important support of 8,627 points and the resistance of 9,163 points, this last level is the first of the real resistance and above we have another of greater depth, the bearish guideline that joins the decreasing highs since May, now at 9,450 points ", concludes the expert.

'MIDTERMS' IN THE UNITED STATES

Outside of Spain, the big issue on Tuesday is the US mid-term elections, which will decide the composition of the House of Representatives and a third of the Senate. Everything indicates that the Republicans (party of the president of the country, Donald Trump) will lose control of the Congress and are focused on maintaining the Senate.

"The polls are still favorable for the Democrats, as they lead by more than eight percentage points." Probes give 86% chance for Democrats to win the House of Representatives, while for the Senate, things seem less promising for the Democrats. Democrats, since there is an 85% chance of Republicans winning in the Senate, Trump's approval rating continues in the range of 40-45%, but most still disapprove, "explain the Danske Bank experts.

In addition to these two issues, there is focus on Brexit. The UK Prime Minister, Theresa May, has said that the agreement is closed at 95% and has shown confidence that a solution to the issue of the border with Ireland can be found after leaving the country of the European Union (EU) .

OTHER STOCKS AND MACROECONOMICS

All in all, European stocks have fallen moderately today. This Monday Wall Street closed with a mixed sign (increases in the Dow and the S & P and falls in the Nasdaq) in a complicated session for the technology. Today, however, it is dyed green in its three main indices at the close of the Old Continent market. As for Asia, predominance of green numbers and increases of 1% for the Nikkei.

Regarding the macro data calendar, today the PMI services and the October compound in Europe have been published. The final reading of the PMI of October in the Euro Zone, at 53.1, was below the one observed in the previous month (54.1) and indicated the lowest level since September 2016.