The Ibex closes flat with an eye on Brexit and another on the trade war

The Ibex 35 has closed flat (+ 0.05%; 9,385.00 points) in a day in which investors have remained aware of the main uncertainties that concern the market: the trade war and Brexit. The global stock exchanges remain in the expectation that there will be advances in these two processes, which have become the engines (and the ballasts) of the market in recent months.

In addition, in Spain there is talk of MásMóvil, which has denied the information published by ElConfidencial about a possible purchase or merger with Vodafone Spain for 6bn euros. The British operator claims it's a destabilization campaign, while MásMóvil has limited itself to deny the news.

On the other hand, 'Expansión' has published that Bankia's main private shareholder, Artisan Partners, seeks support to merge it with ING. And Berenberg is still betting on a corporate operation between Liberbank and Unicaja.

In addition, Bolsamania has published that the US fund Capital Group, one of the largest investment firms in the world, has become a relevant shareholder of Cellnex (-2%) after buying 3.1% of the capital, valued at 353 million Euros

In the midst of all this, results continue to be published. Peugeot Citroën has increased its revenues in the third quarter despite the complicated outlook for the sector. These amounted to 15.5bn euros compared to 15.4bn a year ago. Heineken's profit, meanwhile, has increased 4.4% until September. In the US, Boeing has reported a fall in profits after the 737 MAX accidents, while Caterpillar has issued a warning of benefits.

BREXIT, TRADE WAR AND OTHER MARKETS

China announces new rules to facilitate business as of January 2020

Boris Johnson has frozen the Brexit bill after losing the urgent processing vote on his plan in the British Parliament. The president of the European Council, Donald Tusk, has said he will recommend that the Twenty-seven accept the request of the United Kingdom to extend the Brexit date.

His idea is that the new deadline be set on January 31, 2020, although it would be a flexible extension. That is, it would be terminated when the Brexit agreement is ratified, should that happen. The pound rises in value 0.1%, up to $ 1,2885, while the euro falls in value 0.1%, up to $ 1,1122.

On the tradewar, the State Council of China has approved a battery of reforms aimed at optimizing the business environment and accelerating the creation of a modern economic system with high quality development through decentralization and the elimination of bureaucratic obstacles, as well as through the protection of competition and market access.

Beijing has set a system of sanctions for infringements of intellectual property, and expresses its commitment to work on improving the mechanism for resolving intellectual property disputes, in addition to increasing the protection of intellectual property rights, one of the main issues of friction between the US and China. The price of Brent oil picks up 1%, up to $ 60.39 per barrel. Finally, the Spanish risk premium rises slightly to 64 points and the yield of the 10-year bond remains at 0.25%.

TECHNICAL ANALYSIS

"Sixth consecutive session in which our index moves between the level of 9,300 points below and 9,400 points above. But there we are, without wanting to lose support, but we also dare not resist. On the one hand we have that 'reversal' on Thursday of last week (when we scored a maximum at 9,495 points) and on the other hand we also have the famous 9,410 points.The daily and weekly gap that has not been overcome in closing prices, since May. And there have been many attempts to close above, but still nothing, "explains José María Rodríguez, analyst at Bolsamanía.

"Anyway," Rodriguez concludes, I remind you that to close it, and since it is a weekly bearish gap, you should do so at the closing price of a Friday and almost the least is if you do it during the week. Although there is no doubt that doing so would be a warning to navigators. The fact is that the European banking index, the EURO STOXX Banks, remains exultant. It stays strong and not wanting to take a break. And as long as it remains that way, we can expect an assault at 9,410 points, successfully, at least we expect it. "