- Electrical firms were the worst stocks on Tuesday
- Investors remain aware of possible Fed rate raise on Wednesday
- Inditex, after rising today, will publish its results on Wednesday
The Ibex 35 was able to recover some of its losses on Monday but could not push itself over the 10,900 mark on Tuesday. The index closed 0.37% higher and finds itself at 10,882.1 points. The Spanish parliament was the subject of much attention today as there was a condemnation motion against prime minister Mariano Rajoy.
- 11.711,800
- 0,47%
Returning to the Ibex, Melia Hotels was the biggest riser, after gaining 3%, followed by IAG on 2.84%. Indra was over 2.64% higher, while Ferrovial closed 1.69% higher.
The heavyweights of the market had an interesting day. BBVA rose 0.91% to 7.4 euros. Inditex also registered a rise at 0.18%, one day before it releases its quarterly results. Iberdrola was 0.19% higher at 7 euros, after Citi predicted it to reach 8 euros. Telefonica closed moderately higher at 0.1% to 10 euros.
Banco Santander fell 0.1% to 6 euros, and Repsol was flat at 14.4 euros. However, Bankia fell 0.65%, and Aena by 0.48%.
The general stock exchange was one to watch on Tuesday. Pescanova gained 66.67% to 2.05 euros, although it is still far from the price with which it returned to the stock exchange. Liberbank was the worst performer at 13.85%, after a gain of more than 40% on Monday. Volatility has stuck with the bank after the prohibition of short-selling imposed by the CNMV.
The session was dominated by political events. The parliament debate about the condemnation of Mariano Rajoy took place on Tuesday, initiated by Unidos Podemos. The debate did not affect the market, as there was little progress in the motion.
In addition, CPI was cut seven points, lowering 0.1% in May compared with the previous month. The index is now at 1.9%, its lowest level since last December.
OTHER MARKETS
European markets pushed higher on Tuesday, apart from the FTSE 100, which fell 0.15%. Inflation in the UK rose to 2.9% in May, its highest point since June 2013. UK PM Theresa May suggested that she would reconsider her Brexit position. The CAC 40 rose 0.4% and the DAX 30 gained 0.59%.
Wall Street regained ground after two days of losses. Investors are expecting a rate rise in Wednesday’s Federal Reserve meeting, but as of now the market has already priced that decision in.
In commodities, European reference Brent cruse gained 0.7% to $48.64 and West Texas rose 0.49% to $46.32. OPEC increased its production in May to 336,000 barrels, according to a monthly report from the group. The group expects an increase in the demand for crude of 2.1% in the second quarter.
Finally, the euro fell against the dollar to $1.1197.
TECHNICAL ANALYSIS
“Another day with little implications, we have been continuing like this for the last three weeks,” said Bolsamanía technical analyst José María Rodríguez. “Until the price breaks with clarity on one side or the other we can only hope.”
Regardless, the Ibex appears to be experiencing an ‘abc’ correction. “In whichever case, we will be speaking of the later lateral movement before restructuring in search of annual highs and above the levels of 2015.”
