The Ibex rises strong over 9,400 thanks to Telefónica

Ibex rises (+ 0.8%. 9,446 points) thanks to the rebound of Telefónica, which rises 3% after falling 6% in the last four sessions. The rest of Europe also lists in green, trying to recover after the last session that was brought down by the Chinese coronavirus. The increase in cases of coronavirus (there are already more than 100 deaths and more than 4,500 infected) continues to weigh the economy down. Beyond the terrible personal tragedy, in the economic field the impact is already noticeable. However, experts are confident that it will be short term and that things will recover in a couple of months thanks, mainly, to how quickly the authorities are acting.

"We believe that it is better to wait for the increase in the number of cases to slow down before being positive again on the markets. We know that there is an incubation period of 14 days and that the virus can be transmitted when the subject shows no symptoms. We could be on the cusp of a plateau or facing a massive escalation in the number of cases, "warn the experts from the London Capital Group.

Airlines are being the most affected by the health crisis in China. To the declines seen in Europe in the last days we must add the crashes in Asian companies. Korean Air Lines has sunk 7% on Tuesday. The Australian Qantas Airways has fallen 5%.

Here in Spain, the main news are the results of Bankia. The bank has announced a 23% decrease in profit in 2019 due to the "very important" effort in provisions, as the entity itself has pointed out. Bankia is not doing well in the stock market this year. This Tuesday it was down for a good part of the morning to finally close with a 0.75% rise. Today, at the press conference, José Ignacio Goirigolzarri has remarked that there is no merger on the table.

In another order of things, Brexit is once again the protagonist in the week in which the deadline (January 31) for the exit of the United Kingdom from the EU is met. A transition period is set to start then in which both parties will work on the ambitious - and for some impossible - objective of agreeing to a new free trade agreement before the end of the year.

EU chief Brexit negotiator Michel Barnier warned the United Kingdom on Monday that the block would "never, never, never" compromise the integrity of its single market and accused Britain of underestimating the cost of departure.

As for other corporate news, we are still talking about the departure of Jordi Sevilla from REE because of its differences with the Government of Pedro Sánchez. The spokeswoman, María Jesús Montero, has said that there is still no substitute for Sevilla.

On the macro level, unemployment in Spain falls by 112,400 people in 2019, its lowest decline since 2013, and 402,300 jobs are created.

TECHNICAL ANALYSIS

"The important rises of this Tuesday fit within the normal parameters taking into account that this Monday we fell twice what we went up today. It could be said that we are facing a simple 'pull back' to those levels that until now acted as support for a long time and can now be a resistance ", explains José María Rodríguez, technical analyst at Bolsamania".

"Even if we could place ourselves above the resistance of 9,465 points, the really important thing is in the bearish hole of this Monday that could end up being weekly, at 9,562 points," he adds.

"To somehow erase the corrective candle this Monday, we need our selective close above 9,562 points, and if it can be in weekly candles better. It won't be a simple rebound with the intention to fill in totally or partially said hole." the expert concludes.