- Oil still under pressure after US pledges to increase production
- Donald Trump will become the 45th president of the US on Friday
Mario Draghi's comments were not enough to stop the Ibex 35 falling through the lower support of the index, after suffering a fourth consecutive loss on Thursday. Even though the falls were moderate, 0.0% to 9,379.10, investors were not convinced after listening to the ECB president.
- 10,630€
- 0,28%
- 11.707,900
- 0,44%
- 1,598€
- 0,00%
Despite losses for the Ibex, Grifols led the advances in the index, and has now risen 10% since Donald Trump was victorious in November. The company has a lot of business in the United States and the strong dollar is helping it. It was followed by Melia Hotels with an increase of 3.69%.
In addition, Banco Popular, Banco Sabadell and Caixabank all gained more than 2%. On the other side however, the stocks which fell the most were Mapfre (-2.07%) and Enagás (-1.75%). Iberdrola dropped 0.78%, Telefonica by 0.63%, Inditex by 0.4%, BBVA by 0.33%, and Repsol by 0.21%. The only blue chip that finished in positive was Santander (0.55%).
DRAGHI, MAY, TRUMP, MAIN PLAYERS OF THE WEEK
The ECB finished the first major meeting of 2017 with no variation in its monetary policy. In addition, Mario Draghi spoke about the future of the entity, saying rates could be at 0% for a long time.
Regarding Brexit, some banks have begun the process of relocating some of their London operations to mainland Europe, as well as transferring employees.
Friday will see the inauguration of President Trump, and the Republican will speak in Washington ahead of being handed the keys to the Oval Office.
On the macro side of things, in Spain there was the bond auctions on Thursday. Specifically, Tesoro put together 655 million euros in a three-year bond, and has offered investors a marginal negative interest rate of -0.229%, against 0.001% of the previous year. In the US there was mixed data on housing and better-than-expected numbers on the manufacturing sector and the labour market.
TECHNICAL ANALYSIS
"From the technical point of view we can see that the lows of Thursday (9,327) coincide with the base of the lower support. Because of hitting this point we can't deny that we are looking in the short-term for the resistence of 9,500 points," explained José María Rodríguez, analyst at Bolsamanía.
"Regardless, what's really important is that our market remains stuck in a narrow lateral movement, and that in theory should end with a shot up that shoudl reach the levels of December," he added.
