The Ibex (+ 1.2%) recovers the 9,100: optimism surrounds Brexit trade issues

The Ibex 35 has closed with gains and maximums of the session (+ 1.25%, 9,104.40 points) after Donald Trump posted on Twitter that he will meet this Friday in Washington with Chinese Deputy Prime Minister Liu He, to bring positions in the negotiations between China and the US that begin this Thursday. "Great day of negotiations with China. They want to make a deal, but me? I will meet with the Deputy Prime Minister tomorrow at the White House," said the American president.

The stocks move completely according to the state of negotiations between Chinese and American representatives in Washington. "The hopes are not too high, since China has said that there are some issues that it is not willing to discuss. (...) It is unlikely that significant progress will be achieved," says David Madden, an analyst at CMC Markets in London. In any case, the market continues to move by tweet, especially those published by Trump.

BREXIT, MODERATE OPTIMISM

The other big issue that moves the indexes, Brexit, has also offered positive news. UK Prime Minister Boris Johnson has met with his Irish counterpart, Leo Varadkar.

After the meeting, they have shown their optimism about a "possible agreement" for the United Kingdom to leave the community bloc on October 31. "Both continue to believe that reaching a pact is in everyone's interests," they said in a joint statement. It is not much, but the markets are clutching at straws in everything related to this chaotic process.

MINUTES OF THE FED AND ECONOMY

Meanwhile, during the last day the content of the minutes of the last Federal Reserve (Fed) meeting was published, which showed that central banks remain concerned about the US-China trade war. The fact that inflation is below its 2% target is also a cause for concern. "There is a feeling that markets are moving forward and that operators are taking into account more interest rate cuts than the central bank wants to apply," says Madden.

In the macro data chapter, the UK economy contracted 0.1% in August, more than expected. In addition, the minutes of the last ECB meeting have been published in Europe, showing the division within the body. More than a third of the ECB Council opposed the measures announced by Mario Draghi (return of the QE and reduction of the deposit facility rates to -0.5%).

FROM IBERDROLA TO PHILIPS, VIA INDRA AND LVHM

In the business field, Iberdrola (-0.58%) has made headlines in Spain after announcing that it has initiated an internal investigation to clarify the latest information about its links with former Commissioner Villarejo. ElConfidencial and Moncloa.com have published that the utility contracted the services of the former commissioner to extort local politicians and Manuel Pizarro himself, then president of Endesa.

Indra also deserves to be highlighted, which shot up 9.58% after re-winning the vote count of the next elections on November 10. In addition, banks have risen very strongly, with gains of over 2% for BBVA and Santander and 4% for Sabadell, CaixaBank and Bankinter.

On an international level, Philips has dropped sharply after announcing a 'profit warning' while LVHM has risen eagerly after publishing third-quarter sales above estimates.

In other markets, Brent oil picks up 0.9%, to $ 58.85. In addition, the euro increases in value 0.36%, up to $ 1,1007, while the pound increases in value 0.8%, up to $ 1,2303. In Spain, the risk premium falls to 69 points and the yield of the 10-year bond rebounds to 0.22%.

TECHNICAL ANALYSIS OF THE IBEX 35

"In the end, the moment oscillator (stochastic) was right when it crossed upwards from significant oversold levels. And, specific corrections aside, it can be said that there is margin of rise in the short term. The next resistance is found in the bearish gap of 9,166 points, and above there is nothing until the origin of the correction, at 9,300 points. Below, on the side of the supports, we have 8,850 points: the minimum of last week, "argues José María Rodríguez, analyst at Bolsamanía.

"In short, unless the negotiations between China and the United States turn around at the last moment, everything is possible with Trump, the truth is that there are conditions to bet on a price recovery movement aimed at the October highs and, subsequently, the great resistance that, as we know for sure, is at 9,410 points: the weekly bearish gap at the beginning of May, "concludes this expert.