- Amancio Ortega’s company falls 3% and fell below 30 euros for first time since March
- Iberdrola explained its results were affected by adverse conditions in Europe
- Euro tanks to lowest point in three and a half of months
The Ibex 35 has not been able to lift its head this week. The index, which began the day positively, reversed gains to fall 0.83% to 10,230 points. Siemens Gamesa was the principal hamper as it fell 7% on bad results and the loss of 6,000 jobs. Inditex and Iberdrola also saw results affect their performances on Tuesday.
- 11.656,600
- 0,39%
Investors remain entrenched in the Catalonia crisis, as 200 mayors travel to Belgium to aid Carles Puigdemont’s cause.
Despite this, the euro tanked to lows of the last three and a half months, eroding the support of $1.1574 to leave a level below $1.1566. The common currency appears to be facing sell-offs since the 26 October when MArio Draghi announced a strategy to limit the ultra-expansive programme slower than expected.
Returning to the Ibex, Siemens Gamesa was the biggest faller on the day as it was down 6.81% to 11.15 euros after reporting its results which Link Securities analysts described as “very weak”.
INDITEX FALLS BELOW 30 EUROS
Amancio Ortega’s company fell 3% and below the 30 euros for the first time since March. The clothing firm has saw profits since 2009 and its share price has reflected that, but it has been affected recently.
Iberdrola was also down (-1.66%) after it said its third quarter results were affected by “adverse conditions in Spain”, global consolidation of neoenergy and the effect of Siemens merger with Gamesa.
Melia Hotels fell 2.11% ahead of results on Wednesday, as did Mapfre (-0.95%), BBVA (-0.69%), Gas Natural (-0.58%).
DIA THE BEST PERFORMER
DIA was the stock which gained most on Tuesday. The supermarket chain advanced 1.84% after Goldman Sachs increased its stake to 6.94%. It was followed by Tecnicas Reunidas, which was up 1.28%, Repsol (+0.69%), Amadeus (+0.42%) and Abertis (+0.27%).
Janet Yellen will speak this evening. “Tonight, the president of the Fed will speak at an event in which she will receive an ethics prize in the government. However, we don’t expect that she will say anything about monetary policy in her speech.
TECHNICAL ANALYSIS
José María Rodríguez explained that last Friday the index was not able to confirm the weekly beat of the resistance of 10,420 points. “What’s more, the end of last week was far from the highs of the week and it is not exactly a sign of strength.”
“The lower channel was moving the price from six months ago and is now almost useless when the price is looked at once again. The only thing that we can understand in this moment is that the lows and highs are increasing from the figures at the beginning of October.”
