Ibex closes slightly lower but stays above 10,900

All this comes in a day in which Asia took the headlines, after ratings agency Moody’s downgraded China to “A2” from “Aa3”. According to its analysts, Beijing will see its financial strengths eroding in years to come. The decision provoked falls in the yuan and also in Chinese stocks, with losses of 0.7% in Shanghai.

In Europe the European Central Bank president Mario Draghi was present in Madrid, where he spoke of the impact of his stimulus on the banking sector. Draghi asked for “vigilance” in the sector related to its low profitabaility.

The Italian defended his measures which central banks had taken in response to the crisis and doesn’t see any reason to reverse any decisions. The stimulus “has allowed a longer system of interest rates without negative effects on financial stability.”

He also presented the Financial Stability Report from the ECB and warned that sustainability risks would increase in the middle of the revaluation of the bond market and during political instability.

The stocks which gained the most on Wednesday were Cellnex, which finished 1.94% higher, while IAG gained 1.21% and Enagas by 0.7%. Santander climbed 0.62%.

The other heavyweights of the Ibex like BBVA and Repsol were flatm while Inditex fell 0.22% and Telefonica by 0.49%. Popular saw a loss of 3.61% and picked up the wooden spoon on Wednesday, accompanied by Iberdrola which fell 1.26%.

From a technical point of view, Bolsamanía’s analyst José María Rodríguez said that “the Ibex registered, in the short term, a no man’s land: half way to the key support of 10,380 points and the resistance of annual highs (11,185).

Oil prices fell around 0.2% despite crude inventories falling more than expected. During the last week, the number of barrels has been reduced by 4.4m to 516.3m according to the US Energy Information Administration.