- The falls in Italy come after the announcement of the Government between '5 Stars Movement' and the 'Northern League's deal draft
After seven weeks closing with positive balance, the Ibex 35 ends these five sessions with a cumulative loss of 1.55% pressured by the bank's falls and closed this Friday with a fall of 1.02%. Italy and its banks have tensed the market this day after knowing the draft of the government agreement between the '5 Star Movement' and the 'Northern League', a draft that includes, among other things, a basic income of 780 euros per month.
- 11.659,200
- 0,35%
In red, Banco Sabadell (-3.39%), Santander (-2.73%) and DIA (-2.6%) were the most bearish values of the session, although none of the Ibex banks managed to close in green: Bankia (-2.32%), BBVA (-1.89%), Bankinter (-1.75%), CaixaBank (-1.67%).
Repsol also closed with losses (-0.15%) after completing the sale of 20% of Gas Natural to CVC and Corporación Financiera Alba for 3,816 million euros. In turn, the gas company (+ 0.86%) has replaced the three directors of the oil company.
On the other hand, Merlin Properties (+ 0.98%), Técnicas Reunidas (+ 0.96%) and Red Eléctrica (+ 0.88%) were the most bullish in a session in which values in red predominated.
Abertis has made the news this day with the appointment of Marcelino Fernández Verdes as the new president after the takeover of ACS and Atlantia, and will relieve Salvador Alemany, one of the company's founders together with Florentino Pérez.
ITALY SETS THE RHYTHM FOR THE WEEK
The week that ends today has been marked by a samller role of the United States and a greater role of Europe especially Italy's. The market is very aware of everything that happens there in the process of government formation, which will be integrated by two anti-system parties. For now, the week ends with both formations trying to reach an agreement to elect the prime minister. According to the analysts, they are looking for someone that won't be problematic and that will do exactly as he is told.
In addition, this has also been the week of the crisis in emerging countries, with significant scares in currencies such as the Brazilian real, the Argentine peso or the Turkish lira. The strength of the dollar and the levels not seen for years in the profitability of American bonds have created a perfect breeding ground for a situation that will continue to worry the markets.
To all this we must add Catalonia, which again poses as a problem for the markets. The media analyze on Friday the act in which this Thursday the new president of the Generalitat, Quim Torra, took possession of his position. Experts agree that Torra will do what Carles Puigdemont dictates and, in this sense, it is expected that tensions between the Autonomous Community and the State will persist and increase.
PETROLEUM
And, in the midst of all this, we must not forget oil, with prices at levels not seen for 42 months and that this Thursday touched 80 dollars per barrel. Donald Trump's decision to withdraw the United States from the nuclear agreement with Iran and fears about the sanctions expected for Iran, which will foreseeably affect its oil production capacity, are driving prices. OPEC has already said, in addition, that oil at $ 80 is not going to change their stance on their production cuts. Saudi Arabia, pending the IPO of Aramco, is interested in a strong oil.
TECHNICAL ANALYSIS
"It wasn't possible, our index has not been able to close for the eighth consecutive week in green," summarizes the Bolsamanía technical analyst José María Rodríguez. On the other hand, he points out that "in general, all of the major European indices are still strong, despite achieving a rising close of 13% since the end of March, they are holding the rate well in the high zone, close to the annual highs" . Unlike Europe, the Ibex "is once again weaker" due to the renewed frailty of the financial sector, which falls another 2% on average in the session. According to the analyst, we have a first support in the 10,090 points and, below, the 9,940-9,950 points. On the resistance side, there are 10,400 points and, above, 10,650 points.
"Telefonica does not help with the drilling of the support of eight euros, a level that had managed to stop the falls in recent days," adds Rodriguez. In addition, he points towards Santander, "which presents an important support at 5-5.05 euros, the basis of the wide lateral movement through which the title has been moving for just over a year," that is, "a weekly closure below five euros would undoubtedly be a powerful signal of weakness for the financial sector and, therefore, for our Ibex ".
