The Ibex 35 falls 1.2% due to the collapse of banks after the ruling of the Supreme Court

The Ibex 35 ends this Thursday with a fall of 1.2%, to 8,889 points, dragged down by the strong falls of the banks. All the entities have collapsed following the decision of the Supreme Court, which establishes that they will be the ones who must pay the tax of legal acts in a mortgage.

Banco Sabadell was the most affected on the stock market this Thursday, with a 6.7% collapse, although no bank has been spared from the falls: Bankia (-5.1%), Bankinter (-6.3%), Caixabank (-4.5%), BBVA (-2.7%), Santander (-2%). The banks of the Continuous Market have not been saved either: Liberbank (-6.7%), Unicaja (-5.3%). According to Moody's calculations, the ruling of the Supreme Court will involve a cost to the bank of more than 4,000 million euros.

Also the falls in other large stocks, such as Inditex (-0.4%) have pulled the Ibex under. The lack of consistency of Telefonica (-1.08%), which has not just decided on the increases, is one of the great burdens for the selective, which fails to overcome the most immediate resistance, in the 9,163 points.

In contrast, DIA closes as the most bullish value, with a rise of 5.36%, after its latest crashes. However, it still does not recover the euro from trading while Norbes Bank speculates with its shares. Profits of 2.8% for Acerinox and 2.37% for Colonial after the improvement of 'rating' by S & P, which places the real estate company in 'BBB +'.

In the rest of Europe, also day of falls, milder than in the Ibex 35. The DAX 30, the most bearish next to the Ibex, dropped more than 1%. Investors are still very aware of Brexit, on which it seems that there will be no agreement and for which the terms of negotiation could be extended.

This Thursday there is talk of the Federal Reserve (Fed) and its lastest meeting, which were published this Wednesday afternoon. "The latest minutes revealed that those responsible for monetary policy are exploring the possibility of over-tightening it, raising interest rates to the point that, instead of being accommodative, they become 'modestly restrictive' in the face of concerns that inflationary pressures become too intense, "says Michael Hewson, head of analysis at CMC Markets in London. Hewson adds that the possibility that the Fed decides to make higher rate hikes than expected could rise. "Maybe in 50 points in December instead of the 25 to which he has accustomed us," he says. The performance of the dollar and US bonds rose to its highest levels in a week after this news.

TECHNICAL ANALYSIS

"The Ibex returns to play with fire". This is how the technical analyst of 'Bolsamanía', José María Rodríguez, defines the selective's session on Thursday, in which it failed again in the attempt to close the bearish hole (resistance) of the 9,163 points and turn downwards. In Rodriguez's opinion, "the problem" is that the Ibex is now very close to the support we set this Monday at the annual minimums, the 8,850 points. Although "we continue talking about the possibility that the 8,800 can act as a revulsive," he adds. This level, the 8,800, corresponds to the price level where the straight line that joins the minimums of 2012 and 2016 passes.

In addition, the analyst adds that "the maximum of this Thursday in the European stock exchanges correspond, with what would be a 'pull back' to the new resistance zone, before the support, which it presented at the September lows." Therefore, the expert recommends "continue to be especially cautious about the possibility that,we've witnessed a simple 'pull back' that has lasted just over 48 hours.