- Banks drove the recovery after being impacted on Monday after 1-O
- Spanish market contrasts gains made by other European indices
The Ibex 35 ended the day practically flat (+0.02%), well away from the losses posted on Monday, allowing it to stay above 10,200 points. The index contrasted with the rest of Europe, which saw modest gains, as investors remain alert to goings-on in Catalonia. For the moment, there is a general strike in the region as its citizens wait for Carles Puigdemont to declare independence for the area.
- 11.635,900
- 0,97%
Inside the market on Tuesday, there were losses for Iberdrola and Red Electrica, which fell 1.3% and 0.9% and were among the worst performers in the index, after JPMorgan cit the rating of both stocks owing to the political uncertainty.
However, on bottom of the pile were ACS, with a drop of 1.7%, Cellnex (-1.45%) and Mediaset (-1.35%). On the gains side, Siemens Gamesa was on top of the table with a gain of 5.18% to 1..67 euros after signing a new contract with China. It was followed by IAG (+2.1%) which continues to gain after the collapse of rival Monarch Airlines. Caixabank rebounded 1.6% after Monday’s losses.
The banks cut their losses, with Bankia up 1.4%, BBVA up 0.89%, while Bankinter (+0.3%), Santander (+0.22%) and Sabadell (+0.06%) were all higher.
Telepizza was up 0.75% after it became known that it was in conversation with Pizza Hut for a potential merger, according to the CNMV.
In relation to the ongoing tensions in Catalonia, experts continue to impart their opinions. According to Barclays analysts, the situation is now ‘critical’ and it sees two possible scenarios. The first of which is that the Catalan leaders abstain from calling independence as it would be seen as an increase in the conflict, while the other is that the regional government does indeed declare independence, leading the central government to activate Article 155.
Away from Spain, UK chancellor Philip Hammond said on Monday that the lack of progress in Brexit will create uncertainty for businesses.
Regarding data, unemployment levels rose in September by 27,858, its biggest rise since 2012.
TECHNICAL ANALYSIS
According to Bolsamanía expert José María Rodríguez, ‘the only interesting thing about the session is that it closes far from the lows of the day.”
“Below the lower gap the next support we find at annual lows of 10,087 points. Below this channel, now at the 10,000 level. Above the horizontal resistance is at 10,410 and especially important the 10,500 points.”
