The Ibex drops over 2% and remains below the 9,800 points

The Ibex 35 has gone back to red on Thursday after dropping a 2.21%, placing itself at 9,756 points. In the past session it was close to regaining 10,000 points, but it hasn’t been so lucky today. Of course, the key is to see if the Spanish index respects the level of 9,900 this Friday, at the close of the week.

This way only one company closes in green today although by little: Endesa has risen 0.53% up to 16.95 euros per share. It has been followed by Meliá Hotels and Gas Natural Fenosa that have finished totally flat.

On the other hand the lower part of the table, the red lantern has been Arcelormittal (-4.15%) and it was followed by ACS (-4.04%) and Grifols (-3.38%).

Likewise the blue chips of the Ibex have also experienced losses. The hardest fall Banco Santander (2-53%) but the rest of them have been close behind. BBVA has lost 1.20%; Repsol, 2.56%; Telefónica, 2.65%; and Inditex, that this Thursday has named Jorge Zapata Suárez owner of some of its subsidiaries (Zara among them) and it has fallen a 2.02%.

Also Mapfre has also suffered sales (-1.02%) after presenting its results: the past year it had earnings of 701m euros in 2017, that represents a fall of 9.7% regarding the previous exercise.

MAIN BOARD AND OTHER STOCKS

Now let’s see if the rises are consolidated and we leave behind us this bad moment for the market, which doesn’t look very clear. To some this is more than a mere correction and it’s because it comes from a long period of strong rises and above all because volatility is very present and that is not good news.

“The main focus is still in the market’s general trust and if the worst has happened. Our indicators of trust in the market have gone from a feeling of extended trus two weeks ago to a neutral feeling, which suggests that the markets aren’t balanced and sooner or later we hope that the rising tendency resumes. Nevertheless, the markets will probably keep showing weakness in the short term”, point out the experts at Danske Bank.

This idea that the markets will continue to be weak on the short term is a recurrent opinion that the experts are offering after the last sessions. In the mid-term there is wider division in opinion, on one hand there are those that think its a simple correction and even advice to enter the markets, on the other those who are more negative and advise to remain in liquidity. In any case we will have to wait and see where the stocks go to confirm who’s right but what is clear is that caution is a dominant element now amongst investors.

MACROECONOMIC NEWS

In the marco sector, the Bank of England has maintained the rate interests in 0.5% and the program for asset acquisition at 435,000m pounds.

Following with more British News, the teams of the UE and the UK are expected to continue with the last negotiations round for Brexit in Brussels, that is programmed to end this Thursday.

On the other side of the Atlantic, the leaders of the US Congress reached a two year budget agreement on Wednesday, with the aim to increase the spenditure in military affairs and national affairs by 300,000 million. The president Donald Trump showed his approval. He tweeted that this is “so important for our great militaries” and added that the two main parties should support the troops and therefore the law. With the agreement, democrats and republicans avoid a new government shutdown.