The Ibex closes flat as caution surrounding G20 remains

The Ibex 35 closed flat (-0.03%, 9,157.40 points) after US President Donald Trump lowered his optimism about an impending trade agreement with China. The parks listed broad earnings after statements by the US Treasury Secretary, who had said that the agreement with China was done in 90% and that they are on the way to completing it. However, the green numbers have been deflated by the uncertainty ahead of the meeting on Saturday between the leaders of both powers.

In business news, DIA has soared 7% to 0.55 euros (it has risen by 20%), after reaching a long-term agreement with its creditors to refinance its debt. It has also announced that it will carry out an additional capital increase valued at 100meuros, which will be added to the expansion of 500 million already announced.

On the negative side, Fluidra has plunged 10% after the accelerated placement of 4% of its capital by the Rhône fund at 11.8 euros per share. In addition, Aena has dropped 2.62% after a negative advice from JP Morgan and a positive one from Berenberg.

Among the values ​​that have fallen the most have been ACS (-3.79%) and Colonial (-2.94%). Among the most bullish were ArcelorMittal (+ 4.72%) and IAG (+ 1.87%).

In other markets, Brent oil rose 1.6% to 66.11 dollars. In addition, the euro falls in value 0.1% to $ 1,1365. For its part, the Spanish risk premium falls to 70 points and the yield of the Spanish 10-year bond remains at minimum records at 0.38%. In addition, the bitcoin continues to shoot (+ 13%) and goes for the $ 13,000 not seen since January 2018.

G20 MEETING AND THE LATEST THREAT FROM TRUMP

Investors around the world await the imminent meeting that will take place in the framework of the G20 summit in Osaka. The market is hopeful that the two largest economies in the world are at least moving towards dialogue. The words of Steven Mnuchin increase optimism, but they do not convince.

US President Donald Trump has warned that he will impose additional tariffs on imports from China if a trade agreement is not reached, warning of the repercussions that the measure may have for the Asian giant, including the relocation of companies.

"It would lead to additional tariffs, very substantial additional fees if there is no deal," Trump has threatened during an interview with the US chain Fox News, where he has expressed his willingness to tax another 350bn dollars in products from China, in addition to the 250bn of dollars to which an additional tariff of 25% was applied.

The other issue of the day are yesteday's statements of the president of the Fed, that calmed a little the spirits regarding the expected rate cut. Powell also defended the Fed's independence and said the institution will not give in to political pressure.

"This was clearly a hint to Trump, who has been asking for lower rates and a weaker dollar, and the US markets ended up in red because Powell's words were not expected and this has led to a mixed session in Asia." , explains David Madden, analyst at CMC Markets.

TECHNICAL ANALYSIS OF THE IBEX 35

"The Ibex loses 'momentum' (cruise speed) after closing away from the highs of the session and staying at the doors of the very short-term support, which joins the successive lows growing this month that we are about to close" , explains José María Rodríguez, analyst at Bolsamanía.

"Below, we have the support of 9,060 and, above all, the 8,900 points.The problem is that we are moving away from the resistance zone of 9,335 points, and let's not talk about the resistance, of greater depth, in the 9,410 points ", adds this expert.

"It would seem that until we do not jump above the resistance of 9,335 points, we will not have anything, only an erratic lateral movement, let's not forget that it is our selective that is behaving worse among the European indexes, last week they caressed the annual highs, levels that we have not been able to get anywhere near of, "concludes Rodriguez.