The Ibex falls 1.7% but closes the month of May with an increase of 2.5%

The Ibex 35 is down 1.77%, to 7,096.5 points, at the lows of the session, after a very positive week in which the Spanish team has accumulated a gain of 6%. The index closed yesterday above the resistance located at the highs of April (7,210), but finally it has not been able to confirm the overcoming of this level in weekly or monthly closing. During the month of May, it has risen 2.51%.

Bankia and Sabadell have returned to the harsh reality: that of sharp falls due to the increase in short positions in their capital of the Millennium fund. Both banks are still very touched and their price is down. Repsol (-5%) has been another of the most bearish stocks alongside BBVA (-4.7%), which has anticipated some very difficult years for its operations. Santander (-4.4%) has also fallen sharply, in another bad day for the banking sector after the rebound in recent days.

This Friday, the market has slowed its progress compared to recent days after Donald Trump said he is going to make an important announcement about China. A press conference with the President of the United States is expected this afternoon and the markets are nervous about what he could say.

Earlier this week, US Secretary of State Mike Pompeo said that the country no longer views Hong Kong as an autonomous territory of China and that the region would therefore no longer be subject to the favorable trade relationship that currently exists.

The US House of Representatives also passed a bill earlier this week authorizing sanctions against senior Chinese officials for human rights abuses against Muslim minorities, "so today's press conference could increase further. betting, "says Michael Hewson, chief analyst at CMC Markets.

"This abrupt last-minute turn in US-China trade relations simply shows that markets not only see what they want to see and hear what they want to hear, but they also choose when they want to do it," adds Hewson. This, after a week in which the stocks have not stopped rising despite the multiple threats on the table.

Experts stress that, in the past two months, European stocks have only managed to reverse a little more than half of the losses since March, while the US markets have recovered the losses from March almost completely.

In Spain, the state deficit has more than doubled in the months up toApril, reaching almost 20,000 million euros, equivalent to 1.78% of GDP, compared to 0.62% of GDP a year ago, according to the data updated this Friday by the Ministry of Finance. In addition, the Government has approved the minimum income of between 462 and 1,015 euros for 850,000 households, which will cost around 3bn euros.

"We hoped with some illusion that the Ibex would confirm in weekly candles above the April highs. But it has not done so and, furthermore, it is moving away from them. Therefore, and to the extent that we do not succeed, we can only say that we continue to be lateral, "says José María Rodríguez, an analyst at Bolsamanía.

"Within the side of the last two months with support at 6,400 and resistance at 7,200 points as round figures. Only by forcefully closing above 7,210 will we leave the door open for the rebound to continue towards 7,440 and even 8,000 points (50% adjustment). But nothing more, "adds this expert.

"And although it is very far from the current prices it is key that the 6,400-6,420 points are respected. Below we would begin to see ghosts with a target at the March lows. And in the meantime, waiting for the price to tell us what it wants to do and when, "he concludes.