Ibex 35 moves closer to 9,500 after ArcelorMittal impresses

ArcelorMittal was the best performer of the day after gaining 5.2% to 8.62 euros. The steelmaker shot up after the rise in iron prices. Moreover, the company continued its gains from last week's strong earnings report.

Two other stocks which performed well were IAG and Repsol. The airline was 2.19% higher to 5.80 euros. On the other hand, Repsol gained 1.97% to 13.95 euros, despite falls of more than 2% for oil prices.

The heavyweights of the Ibex were also on form on Monday. The two biggest banking stocks closed with considerable gains. BBVA was 1.46% higher to surpass 6 euros per share, with Banco Santander rising 1.79% to 5.1 euros. Inditex finished 0.63% to the good at 31.3 euros, and Telefonica by 1.1% to 9.1 euros.

Bankia was the other headline news on Monday, not for its performance in the stock exchange, but after the former heads of Banco de Espana and its stock market regulator were charged for the ill-fated IPO of the bank. It was 0.63% higher at 0.95 euros.

Only one stock finished lower, and it was only slightly, after a 0.1% fall for Grifols to 20.8 euros.

In the general stock exchange, Montebalito was the best performer after rising 23.85% to 2.47 euros after reporting its profits for the year. Amper was also notable for its 5.73% rise.

OTHER MARKETS

Wall Street is still maintaining the focus of investors. On Monday, its three biggest indices scored record highs for the third consecutive day. In addition, the S&P 500 hit a capitalisation of more than $20bn for the first time in its history.

European stocks fed off the success of Wall Street, all registering gains on Monday. The CAC 40 in France closed with a gain of 1.24%, the DAX 30 was 0.92% higher and the Ftse 100 gained 0.28%. In the currency exchange markets, the euro fell 0.35% against the dollar to $1.0604.

INFLATION...AND YELLEN

Inflation will be a big talking point in the next few months and will determine the actions of central banks. This is what the experts from Link Securities think, and they are not the only ones. In this sense, investors will look towards CPI data from China, Germany, UK and US this month.

In fact, US inflation expectations have registered record highs for the last two years, according to figures from the New York Federal Reserve.

Along with these details, the biggest event this week is likely to be Janet Yellen's speech on Tuesday. The President of the Fed will speak tomorrow in front of the Senate Banking Committee and Wednesday in front of the Financial Services Committee of the House. "It will be interesting to hear her opinion on the impact on the economy, and also for the decisions on monetary policy of the US central bank relating to the new administration," Link experts said.

The European Commission released forecasts for Spain and other countries on Monday. Brussels lifted prediction for the Spanish deficit to 3.5% of GDP in 2017 and points towards further cuts.

TECHNICAL ANALYSIS

José María Rodríguez, technical analyst at Bolsamanía, says that there was a "promising session on Monday to start the week". He added "it's true that we are at the doors of the 9,504 resistance".

"Thus we are operating a high level, with the hope being that we are capable of closing above that crucial figure, opening the doors to a new higher movement to reach the annual highs of 9,623 points."