The Ibex falls 1.28% punished by weak macro data and Brexit

Investors also remain attentive to the European elections this Sunday. In the United Kingdom, the European elections are being held on Thursday, but the results will not be known until Sunday, when the rest of the countries have voted. "It is likely that May will suffer a heavy defeat and that the new Brexit party by Nigel Farage will be the one that prevails, and it is very likely that the defeat will cause the prime minister to resign," the Danske Bank experts stress. Chaos in the UK is triggered.

Regarding these macro data, in the Euro Zone, manufacturing PMIs and services have generally been worse than expected. In Germany, the manufacturing PMI has remained at 44.3 compared to the expected 44.8 and the previous 44.4. In the Euro Zone, the composite PMI has remained at 51.6 against the expected 51.7. Likewise, the IFO of current situation in Germany in May has remained at 100.6 compared to the expected 103.5.

In addition, the ECB minutes show that the central bank has less hope that the economy will recover in the second half of the year. The central bank has acknowledged that after a few months of slow growth, it has to know if the loss of momentum is temporary or is destined to last before raising the possibility of new measures to support the economy.

IAG HAS ALMOST RAISED 1%

It is curious to observe how, this time, the uncertainty of Brexit that usually weighs down the airlines, today has driven IAG (+ 0.97%). Investors have valued the possible resignation of Theresa May and the fall of more than 2% in the price of oil.

On the side of losses, the most punished companies have been those that have more exposure to US tariffs. Siemens Gamesa and ArcelorMittal have fallen around 4.5%, although the most hit has been Técnicas Reunidas with a 5.10% retracement.

In the middle of all this political commotion, the barrel of Brent crude falls 2.61% at the close of the Spanish market and falls below 70 dollars, while the euro is exchanged for 1.1116 dollars and during the session has arrived to drop to $ 1,1106, a level that was seen since May 30, 2017. The pound also suffers and is in free fall.

TECHNICAL ANALYSIS

"After the bearish gap of the opening this Thursday, we have our most immediate resistance in the 9,232 points. Above we have the maximums of this Monday, in the 9.334 points. On the bottom, on the side of the supports , we have 9,025 points, "says José María Rodríguez, analyst at Bolsamanía.

"Let's cross our fingers for this endurance, because if we lose we can confirm a new corrective stretch, a second bearish impulse that can lead us to 8,840 points (50% of retracement) and below 8,800 points (61.8 points). %), And all this within a scenario of adjustment / proportional correction to the increases from the December minimums, "he adds.

"Rebounds aside, the drilling of supports by the European banking index (SX7E) is clear, forceful, and points towards the December lows at 84 points, this is an additional 5% drop. At least they know that it is practically impossible for our Ibex to recover ", the analyst points out.