The Ibex bounces back but it doesn’t reach the 9,700 points

In the final bounce this session, the Spanish index has taken place after making January’s inflation data known in the US, that has gone over previsions (the US economy grew a 0.5% in the first month of May), which has strengthened the inflation fears that have provoked the market correction of the last few days in worldwide stocks.

SIEMENS GAMESA LEADS THE EARNINGS

Back to the Ibex, the rises have been led by Siemens Gamesa (+4.62%), followed by Meliá Hotels (+2.61%) and the media conglomerate Mediaset (+2.20%). In regard with the hotel chain, it’s one of the ones that have been benefited by Deutsche Bank’s “bet”, with its rival NH Hotels (+2.40% in the main board).

On the other hand the losses have been led this Wednesday by Indra (-2.18%), Técnicas Reunidas (-1.23%) and Repsol (-1.04%). In fact, this last one has been one of the three with BBVA and Banco Santander that has pressured the Ibex 35 the most. On the other hand the entity led by Ana Botín has managed to close the session with a 0.33% rise. The Basque bank has lost the important support of 7 euros and has finished with a 0.43% fall in 6.96 euros).

RISES AND OTHER STOCKS

Regarding the other two blue chips or heavy weights in the Spanish index, Telefónica (-0.17%), although it has managed throughout the session, it hasn’t reached the closing level of 7.5 euros that it lost yesterday. The operator accumulates a fall since March 2017 of 30%. In this way the results will be published on Thursday will be under the microscope specially everything that has to do with its competence in other countries where it’s att and about the debt evolution.

On the other hand, despite being one of the values that falls the hardest of the Ibex in the year (a stock punishment that some analyst think harsh) the textile giant Inditex has finished the session with a 1.04% rise.

Outside Spanish stocks, the European stocks go up today and close with green and rises in value of over 0.8% on average. Likewise after the inflation scare Wall Street’s main indexes are listing 0.5% rises at the time of the Spanish close.

POLITICS, CENTRAL BANKS AND ECONOMY

In another order of things, this Wednesday there’s talk of the resignation of the leader of the German Social Democratic party, Martin Schulz. Now it’s the militants of the party that will have to agree with the agreement with the coalition government of Angela Merkel. If it isn’t possible there will be new elections in Germany.

Luis de Guindos and Philip Lane will defend this Wednesday in front of the commission for Economic and Monetary Affairs of the Eurochamber and its strong points to assume the post for vice president of the ECB. On the other side of the Atlantic, it’s speculated that Loretta Mester of the Fed of Cleveland could be considered by the White House for the role of vice president of the Fed.

As for the agenda of the day, the relevant references today. The GDP of the Eurozone is at +2.5% in 2017, it’s biggest figure in over a decade. And the industrial production of the EuroZone in December has risen a 5.2% versus the 4.2% expected.

TECHNICAL ANALYSIS

José María Rodríguez, technical analyst in ‘Bolsamania’ sees this session as “volatile” and believes it has “no technical implications of any kind”. “In any case, at least it’s clear that in the short term the index shows a support in the 9,580-9,600 points” he adds.

“Let’s say that at least for now the lows of last Friday are working as a support”, he explains. “Nevertheless and inside the financial sector, BBVA’s weakness is worrying, that is flirting too much with the 7 euro support level”.

The expert points out that a “close under this support with space and during the week would be a worrying weakness signal for the firm and therefore for the Ibex”.

“And then Telefónica, that is something else. During the session it has risen with strength but closes practically in the day lows, and without a support of any kind up to 7.3 euros and under the 6.85 euros (2016 lows)”, concludes.