Global stocks have registered significant falls on Monday on both sides of the Atlantic after the rise of tensions in the trade war between China and the US and the Chinese response to the latest round of tariffs from Washington. The stocks in Europe have registered falls of more than 1% (Cac: -2.2%; -Dax: -1.8%; Ftse 100: -2.5%), and in the case of the Ibex (-1.35%), it has even fallen below the 8,800 points and has returned to levels not seen in the past seven months.
- 11.467,300
- 0,24%
The values that have risen the most in the Spanish selective have been Sabadell (+1.2%) and Acerinox (+1.3%). The rest of the values have moved towards the red with important falls for Arcelor (-4%) and ACS (-3.88%).
IAG (-0.8%) has been one of the main protagonists of the analysts’ reports on Monday. The airline conglomerate presented its quarterly results on Friday and now, JP Morgan, UBS, Barclays and RBC Capital Markets have all insisted on the trust they place on its performance on the stock market.
Regarding business news, the big Spanish banks BBVA and Santander have been a real worry for some of the operators. Even though it looks like they are moving towards the levels of 8,300 points in our selective, €4.30 for BBVA and €3.7 for Santander.
Talking about macro, the German economy has continued to report negative data. The PMI index in July has shown a new slowdown in Germany which places it at levels not seen since June 2013 and on the border of the 50 points that mark the difference between the growth and the contraction. With this the Dax has lost the 11,700 points.
The latest offensive from the president of the US, Donald Trump in his trade war with China has led to a new reaction from China. The Asian giant has allowed its yuan to fall 1% on Monday to levels not seen in eleven years. It has also ordered a halt in all imports of agricultural products from the US.
And all this after Trump announced on Thursday new tariffs on 10% of Chinese products. A decision that has led indices everywhere to fall to red numbers. The Spanish stock market, closed on Friday its worst week of the year with cuts of 3.5%. Asia was also dyed red today and Wall Street is experiencing significant falls.
TECHNICAL ANALYSIS
The Ibex closed on Monday “a bearish gap on 8,900 points and it could end up being a weekly thing”. In closed numbers “there we have it, holding on the support zone of 8,780-8,800 for bear life”, technical analyst of Bolsamanía José María Rodríguez has explained.
"Price reference in which several supports converge and that, at least for the moment, would be trying to stop the fall." This level corresponds to an adjustment / setback of 61.8% of the last big bullish momentum, "which started from the December lows (8,290), in addition to being the base (support) of the lateral-bearish movement of the recent months "has qualified.
By values, "also comment that we have two of the big 'blue chips' in important support levels: the December lows in Santander (3.69) and the impressive bullish gap of Telefónica at 6.67 euros." Therefore and as a summary, "we have Ibex, Telefónica and Santander, among others, at important support levels. Either we rebound from here as soon as possible or if they are drilled, I am afraid that the falls will continue and will not be small ", concluded the expert.
