The Ibex falls 0.5% following the European stock markets

The Ibex 35 has fallen (0.56%) at the close of the session on Monday, at session lows, supporting the same downward trend as European stock markets. The exception has been the London Stock Exchange, which closed flat despite being the focus of the main uncertainty of the week with Brexit on the horizon.

The most bullish values ​​on Monday in the Ibex 35 were DIA (+ 4.44%), Técnicas Reunidas (2.27%) and Acciona (0.97%), while Indra Sistemas (-2.63%), Siemens Gamesa (-2.17%) and ACS (-1.99%) led the losses in a session in which Spanish stocks turned around mid-afternoon, after having remained almost the whole day positive.

One of the most bearish values ​​of the day has been one of the 'blue chips', Inditex, which has 1.79%. Another 'blue chip' that has been in the center of the news throughout the day has been Telefónica, after 'El País' published this morning that it will raise by 33% some of its Internet and mobile rates from January, although its stock has quoted practically flat.

Beyond the Ibex, Abengoa has been the most outstanding value of the Continuous Market after it announced that it has received a major award to build a mine in Chile. Its A shares have led rises of 24%, while its B shares closed with a rise of more than 13%.

The news of the day in the international market had as protagonist the president and CEO of the French-Japanese automotive alliance Renault-Nissan-Mitsubishi, Carlos Ghosn, who was arrested in Tokyo for allegedly falsifying his income in the Japanese country. As a result, the shares of the French company have sunk in the Paris Stock Exchange up to 9%.

TECHNICAL ANALYSIS

The Bolsamanía technical analyst José María Rodríguez highlights that the closing has occurred in the lows of the session "close to closing (or what is the same to cancel out) the bearish hole of 8,990 points." In the opinion of the expert, closing this gap would not be a sign of the strength of the Spanish selective but "if we look at our European neighbors (Dax and Euro Stoxx 50) it gives the feeling that they can look once again towards supports that they present at the lows of October "

For Rodriguez, drilling these supports would be a new sign of weakness that would serve to reinforce the bearish scenario in European stock markets and leave the door open to "the rebound to the highs of early November form for the typical 'pull back 'to the most immediate resistances (before support) to catch a run down ".

Dramatic change is needed from the other side of the Atlantic, according to Rodriguez, so that the bullish gap on Tuesday isn't closed. "If it is confirmed we do not rule out the return to the annual minimums at 8,630 points, on the top, on the resistance side, we have the 9,232 points and, above all, the 9,400 points," the analyst said.

ITALY AND BREXIT CONTINUE MARKING THE AGENDA

The main focus of uncertainty for the week will continue to be Brexit. Theresa May has already anticipated that she foresees an "intense week of negotiations". On Sunday, a summit of the European Commission (EC) is convened in an attempt to close the pre-agreement reached between London and Brussels, in the absence of a final vote in the British parliament.

Along with the United Kingdom, the markets are aware of Italy since, this Wednesday, the European Commission (EC) issues its verdict on its budgets along with those of another series of European countries. This weekend, it seems that the Italian Executive has been more conciliatory, although it continues insisting that it will not touch its objectives.

"Geopolitics will dominate a light week in terms of data, and operators will have no choice but to focus all their attention on everything related to Brexit and the trade war," says Jasper Lawler, analyst at London Capital Group.

Over the weekend, conflicting statements have come from Donald Trump and his vice president, Mike Pence, regarding the trade war, which has not helped to stabilize the situation. Therefore, investors are increasingly looking forward to the meeting between Xi Jinping, Chinese president, and Trump, which is expected to take place at the end of the month.