The Ibex 35 closes in green (+ 0.24%) despite the sharp fall of DIA

The Ibex 35 managed to close the session in green, with a slight rise of 0.24%, in a day marked by the sharp fall of DIA (-42.22%), by far the worst value on Monday. The selective manages to stay well above the 8,900, moving away from the key support it has at 8,800 points.

DIA was the main protagonist of the session due to a 42% drop, to record lows, after a JP Morgan rating cut and after the company had revised its profit forecasts downwards and suspended the dividend. In addition, Ana María Llopis has effectively resigned as president of the group and will be the first vice president, Stephan DuCharme, who will take his duties provisionally.

Another protagonist of the day was Cepsa and its decision to delay its IPO (scheduled for this Thursday) by the current instability in the markets, which has caused the appetite of investors to fall.

Despite the collapse of DIA, the Ibex has managed to stay green thanks to the increases of some large securities, such as Telefónica (+ 1.32%) or BBVA (+ 1.04%). Ferrovial (+ 2.63%) closes as the best value of the session. Also highlighted in red are Meliá (-3.16%) and Técnicas Reunidas (-2.51%).

In the Continuous Market, OHL has dropped more than 14.31% after the bleeding of its value of last Friday, which further deepens its minimum of more than two decades.

As for the day in politics, the Government has worsened its forecast for the Spanish GDP for 2018 to 2.3% and the deficit, to 1.8%. The Minister of Economy, Nadia Calviño, has attributed this reduction to the lowest contribution expected from growth abroad.

TECHNICAL ANALYSIS

Although the selective has managed to close in green, it has marked a minimum this Monday at 8,849 points, quite close to the level of the 8,800 points. As recalled José María Rodríguez, analyst of 'Bolsamanía', at the beginning of September we talked about the 8,700 points, "but being a potential support that has a positive trend this moves up and passes through the environment of 8,800 points " In spite of everything, the expert warns that it will be necessary to be pending of the closing of the weekly candle. "To be able to say that something would be starting to change in our Ibex, we will need to draw something different: that at least we build a first growing maximum", explains Rodriguez, that is, "that jumps over the sempiterna of the 9,670 points, the origin of the last bearish stretch ".

For the moment, the expert of 'Bolsamanía' relies on the fact that "the big banks no longer seem interested infalling more". He explains that BBVA and Santander are respecting the supports they present at the annual minimums, at 5.02 and 4.14 euros, respectively. "As long as they hold, it seems that the risk of incurring heavy falls seems quite limited," says the expert, and recalls that in the short term the Ibex has resistance to the bearish hole this Thursday, at 9,163 points.

EUROPE AND THE UNITED STATES

In this way, practically all of Europe has turned green and closes also with increases. Investors are paying attention in Italy and also to Brexit in a key week in both directions. The Italian Government presents its Budget for 2019 on Monday to the European Commission (EC), who will take a decision on it before the end of the month. "Our baseline scenario is that the Commission will now issue a negative opinion and ask for a revision of the Budget," the analysts at Danske Bank point out.

In addition, the markets are also attentive to the Brexit negotiations, with the holding of a decisive European Council in the middle of the week. "It is not clear if an agreement will be reached before the EU summit that will begin on Thursday," Danske warned.

The other third political issue has to do with Germany, after the beating Angela Merkel's partner, the CSU, has taken, it has won in Bavaria but has lost a lot of support.

As for other aspects of the day, the US Treasury will publish its bi-annual report on currency manipulation. It has been speculated that it could signal China as a currency manipulator, which could intensify the war between the two powers. In principle, China only meets one of the three criteria to designate it as manipulative.