The Ibex recovers the 9,100 with an eye on the banking sector results

What happens with Brexit in the British Parliament (from eight o'clock in the afternoon), the results of the Spanish banks and Fed Wednesday will be determinant to condition the evolution of the Spanish selective and the rest of European stocks. Without forgetting the trade negotiations that will keep the US and China in the coming days.

The selective has relied on the rise of Inditex (+ 1.69%), but also in the rise in value of IAG (+ 3.16%) and the strong bounce of Siemens Gamesa (it has shot 13% after publishing results that have exceeded forecasts in sales but have failed to meet profit and margins).

In addition, Endesa (+ 1.79%), Repsol (+ 1.62%), Iberdrola (+ 1.02%) and BBVA (+ 0.29%) also boosted earnings, while CIE Automotive (-1, 79%), Ferrovial (-1.65%), Meliá Hotels (-1.39%) and Telefónica (-0.68%) have weighed the selective.

THE AIRLINES FOLLOW IN THE 'EYE OF THE HURRICANE'

Norwegian (-14%) has collapsed after announcing its intention to strengthen its balance through issuing subscription rights of 3bn Swedish kronor (308,4 million euros) to increase its financial flexibility and create a margin for bonds still in circulation. This announcement has caused a collapse of its shares, which have fallen by 30%.

IAG has been the second most bullish value in the Ibex. The airline, which was interested in taking over Norway, announced five days ago that it would not bid for it, which caused Norwegian to plummet by 20%.

DEBATE ON BREXIT

This Tuesday, the British deputies will debate the proposal of Theresa May on Plan B of the Brexit. It is considered to be similar to the proposal that was comfortably defeated in Parliament two weeks ago.

Experts warn that the time is running out for an agreement to be reached, although they also point out that the currency markets are overlooking the possibility that there is no agreement, even though it is a very likely option.

As for the elements that will serve as catalysts for the markets this week, analysts also point to the importance of the negotiations between China and the US, which will take place between Wednesday and Thursday.

"Investors are worried about the meeting." Last week, Willbur Ross, the US Commerce Secretary, said the two sides are "within miles and miles" of reaching an agreement, but he also said there is a good chance that it is reached, "explains David Maden, market analyst at CMC Markets in London.

"It's not been a secret that the Chinese economy has cooled down.In 2018, the economy grew at its slowest pace since 1990. Yesterday, Caterpillar and Nvidia performance updates highlighted the impact of the slowdown in the Chinese economy." adds Maden. It should be remembered that Apple, which earlier this month made a 'profit warning' due to China, today published its final results.

In addition, the Trump Administration formally accused Huawei Technologies on Monday for violating the sanctions on Iran and for stealing trade secrets in the US. In addition, it asked Canada for the extradition of Meng Wanzhou, vice president and granddaughter of the founder of the Chinese telecommunications giant. All this can pose an additional problem for the negotiations and a form of additional pressure by the US.

Finally, in the chapter on macro data, unemployment in Spain has fallen by 12% in 2018, a year in which 566,200 jobs were created, the highest figure in 12 years. In other markets, Brent oil rose 2.3% to $ 61.34. And the euro depreciates slightly by 0.1% in its cross against the dollar, up to $ 1.1419. Finally, the yield on the Spanish 10-year bond eases slightly to 1.235%, while the Spanish risk premium falls to 103.40 points.

TECHNICAL ANALYSIS OF THE IBEX 35

"Despite the increases on Tuesday, the truth is that nothing has really changed, if anything, the lows of the session coincide with the base of a narrow vertical channel through which the price has been moving since the beginning of the year, "says José María Rodríguez, an analyst at Bolsamanía.

"On the other hand, the daily overweight levels show extreme readings and against that we can only be cautious, but tomorrow's session can be decisive in the sense that either we attack resistances again with greater success or the beginning of a corrective phase is confirmed that in some way drains / adjusts the very strong climbs of the last rally, "adds this expert.

"Apple publishes the Wall Street closing today and tomorrow Banco Santander confesses to the market before the opening, so it is easy for Wednesday's session to be more decisive, more forceful than today's. a short-term support in the bullish hollow of the 8,900 points that could be filled without actually changing anything ", concludes Rodríguez.