The Ibex closes the week with falls of 0.7% and below 9,900 points

Ibex 35 (-0.45%; 9,886.20 points) has closed negatively under pressure from Telefónica, Repsol and Santander. Enagás and Iberdrola have risen, but the general tone of the market has been bearish. The red numbers continue to dominate in Europe as the number of cases of coronavirus increases, especially in South Korea and Iran. In addition, the weakness of economic data in the US, especially in the services sector, are causing significant losses on Wall Street. The selective after marking highs not seen since May 2018 on Wednesday at 10,083 points, has deflated in the last two sessions, which has caused a negative weekly balance of 0.7%.

The index lost short-term support (9,980 points) yesterday and now has the next important one at 9,700 points. In just one day, and due to Telefónica, which did very badly after publishing results, the index has gone from dreaming of 10,500 points to 'asking for a time-out'.

Telefónica's cuts yesterday after publishing its results show that the operator will leave for another time its attempt to attack the 6.80 euros. After some good previous sessions, optimism about the company has vanished again. Today it has fallen by 2.86%, to 6.11 euros.

This Friday, investors have been awaiting the February PMIs and also the CPI in the Euro Zone. In Japan, PMIs have registered very strong falls especially in services, which are very affected by the decline in tourism, underlines Renta 4 in their daily report.

In Germany, the PMI services fell to 53.3 from the previous 54.2 and the estimate of 53.8. The manufacturer was 47.8, higher than the previous 45.3 data and the 44.8 estimate. In the Euro Zone, the service sector dodges the coronavirus effect and grows to a maximum of six months. As for inflation in the Euro Zone, it rises to 1.4% in January, the highest level since April 2019. In the US, the PMI services has been below 50 and has clearly breached the consensus forecast.

Thus, the week has clearly gone from more to less. In the first part, optimism prevailed over the measures being taken to combat the coronavirus by central banks and governments.

In the second part of the week, specifically for the Ibex, the falls in the big titles, with Telefónica and Repsol at the head, have been decisive. In other markets, Brent oil falls 2.6%, to $ 57.75, while the ounce of gold rises 1.7%, to $ 1,648. In addition, the euro appreciates 0.5%, up to $ 1,0840; and the profitability of the 10-year Spanish bond relaxes slightly to 0.22%.

On the other hand, the meeting of European leaders continues to decide on post-Brexit budgets. Bloomberg highlights that there is tension in this meeting and doubts about how the block will cover the huge hole in the budget caused by the United Kingdom's departure. There is a strong division between the northern states, which want to cut spending to cover the deficit, and the southern nations, who want to see greater contributions to agriculture.

Finally, the World Health Organization has confirmed several cases of coronaviruses in Iran, which are added to those registered in South Korea. WHO has considered the extent of the disease to these countries very worrying.

TECHNICAL ANALYSIS

"This week has clearly gone from more to less and draws us a weekly candle that does not invite precisely to optimism, rather the opposite. Although if we look at things in perspective, the truth is that the falls in recent days fit absolutely within the normal parameters and more after a 7% rebound since the beginning of February, "says José María Rodríguez, analyst at Bolsamanía.

"Rebounds apart from the short term, the truth is that everything points to the price attacking the support area of ​​9,700 points, before resistance. Also coinciding with the bullish gap of the session of February 6 at 9,718 points. And below we have the bullish guideline that unites the growing lows since last October and that currently goes through the approx. 9,450 points, "adds this expert.

"As for the values, the movement of Telefónica is very ugly, which leaves us with a clear weekly sail of more and less where the possibility of re-checking the support it presents in the 2019 lows opens. And it is better that this support is not pierced because otherwise there is nothing until the minimum of 2012 at 5.32 euros, "concludes Rodriguez.