The Ibex falls 1% dragged by banks, but manages to save the 10,100 points

The Ibex 35 has gone its own way another day of the rest from European stock exchanges and is the only one to close the session in red. The Spanish index has fallen 0.95% to 10,111 points, dragged by banks, but also by Aena and DIA, among other companies.

IBEX 35

11.435,700
-0,28%

The 'red lantern' of the session this Wednesday was Banco Sabadell. The entity dropped almost 4.2% after a report of RBC Capital Markets came out this morning, in which it withdraws its support to the company and reduces its target price to 1.70 euros (has closed the session in 1 , 67 euros per share).

The rest of the listed banks, which have a great weight in the Spanish index, have also shown this session a bad performance, with falls of over 1%.

After Sabadell, the most bearish values in the Ibex were DIA (-4.01%) and Aena (-3.73%). The first of these is being affected, as is Telefónica (-0.01%) due to the crisis in Argentina. On the other hand, the airport manager felt unease with the sale of 2.7% of its capital by the TCI fund at 174.12 euros per share.

On the other hand, ACS closed flat despite the fact that Berenberg analysts have improved the target price of the construction company to 42 euros per share (the session ended at 36.78 euros).

In contrast, the values that have increased this session have been Indra (+ 3.53%), Técnicas Reunidas (+ 1.99%) and Amadeus (+ 1.51%).

CONTINUOUS MARKET AND OTHER STOCKS

On the other hand, in the Continuous Market we must highlight the strong bounce back of Telepizza. It has risen about 8.2% this session after announcing a strategic agreement with Pizza Hut. Meanwhile, OHL has collapsed (-3.55%) after the results presented yesterday and the Business Plan announced today.

Outside of Spain, the rest of the stocks of the Old Continent have dominated the slight increases, except in the case of the Italian FtseMIB. Meanwhile, Wall Street shows moderate earnings on Wednesday at the close of the Spanish stock market. Investors are still awaiting the 10-year US bond yield, which broke 3% yesterday and marked levels not seen for 7 years.

POLITICS AND MACROECONOMICS

In the macroeconomic environment, it seems that the crisis in Argentina is becoming a 'real' burden for the Spanish market. Meanwhile, other 'problems' are still present, such as what happens or doesn't with the Government of Italy, or what happens or doesn't between the United States and China, which this week are still negotiating to reach a trade agreement.

In Italy, the fall of its index and the increases in the bonds have to do with the intentions of the '5 Star Movement' and the 'Northern League'. The two extremist parties of the new government want the European Central Bank (ECB) to forgive part of the Italian debt.

Today there was talk that North Korea has announced the suspension of high-level contacts with South Korea scheduled for Wednesday in retaliation for South Korean-US joint military maneuvers. The official North Korean news agency, KCNA, has reported the suspension and attributed the decision to the "provocation" that these maneuvers entail in the middle of a diplomatic approach process.

Regarding the agenda of the day, the CPI of Germany in April remains at 1.6%, in line with expectations. The CPI for the Euro Zone, meanwhile, fell back to 1.2% in April.

TECHNICAL ANALYSIS

José María Rodríguez, technical analyst at Bolsamanía, points out that if on Tuesday the main cause of the falls was Telefónica today, Wednesday it is the financial sector. "It can be said that the falls are on average, 2.5%, highlighting above all Banco Sabadell's falls of around 4%," he adds.

"And you already know from experiences that without the banks, our Ibex can not go very far, and we are thankful that our operator has managed to withstand the current rate and the Inditex rises, otherwise the falls would have been much more bulky, "says the expert.

"That said, technically the Ibex would have drilled the very short term straight line, which has been supporting since the end of March, leaving the door open to the possibility of returning to the support area, before resistance, of the 9,940-9,950 points, "explains Rodríguez.

"If we look at our European neighbors, we continue to see their three big indexes (Dax, Euro Stoxx 50 and Cac 40) mantaining the high zone without any problem, so for the umpteenth time it is demonstrated if there is any doubt them that our Ibex is still one of the most lagging in Europe ", concludes the technical analyst.