The Ibex goes up 1.5% and recovers 6,800 due to strong increases in banks

The Ibex 35 has risen 1.55% to 6,836.4 points, driven by strong increases in banks. The European banking sector is up 4% and is breaking resistances. Within the Spanish selective, BBVA (+ 9%), Bankinter (+ 8.5%) and Santander (+ 4.78%) have done especially well, which has presented accounts for the first quarter with a sharp drop in profit but that the experts liked.

The Cantabrian entity has announced a decrease of 82% in its net profit up to March after provisioning 1.6bn for the coronavirus. The bank earned 331m in the first three months of the year.

Santander's figures follow those of Bankinter from last week and are a prelude to what Bankia, BBVA, CaixaBank or Sabadell are going to publish in these next days. For its part, BBVA announced this Monday the sale of the majority of its insurance business in Spain to Allianz for up to 377 million.

Other European entities, such as HSBC or UBS, have also announced impacts on their numbers for Covid-19 on Tuesday. This season of results is going to be tremendously negative due to this reason, as already seen.

In addition to Santander's results, other aspects have marked the session. The Federal Reserve (Fed) has returned to remove the artillery and has expanded its program of purchase of municipal debt by 500,000 million dollars. We recall that the two-day meeting of the Fed begins today and that its conclusions will be announced tomorrow Wednesday.

As for oil, it has reduced declines. West Texas June futures are down 5% to $ 12.12, while Brent futures are up 1% to $ 20.30. For its part, the euro appreciated 0.1% and trades at $ 1.0838, while the yield on the Spanish 10-year bond relaxed to 0.84% and the risk premium fell to 132 points.

In the macro data chapter, the EPA for the first quarter in Spain, which includes only 15 days of confinement, has reflected an increase in unemployment by 121,000 people until March and the destruction of 285,600 jobs. They are the worst data since 2013.

We recall that on Thursday the GDP of the first quarter in our country will be published. The week is loaded with very relevant macro data, since we will also know the GDP of the Euro Zone and the USA. All of them will show us to what extent the pandemic is affecting the economy worldwide.

TECHNICAL ANALYSIS OF THE IBEX 35

"More of the same. Rises in the Ibex that are clearly below those of our European neighbors. And that's mainly due to the rises in banks. However, I am beginning to worry about the fact that we have the S&P 500 at levels of very important resistance, on the verge of the level of adjustment / decline of 61.8% of the previous strong correction, "argues José María Rodríguez, analyst at Bolsamanía.

"And if Wall Street decided to take a small and well-deserved rest we may suffer more than the others given the intrinsic weakness of our selective. In fact, despite the rebound on Tuesday we were trading at 6% of the April highs (7,210) whilethe rest of our European neighbors have set new monthly highs today. This shows the underlying weakness that our market continues to show, "concludes Rodríguez.