The Ibex (+ 0.68%) closes in green ... even though the banks have slowed the rebound

European exchanges have advanced positions on Tuesday supported by speculation about the launch of economic stimuli by China to mitigate the effects of the coronavirus. The increases in the Ibex (+ 0.68%) have been limited by the cuts in the banks (Bankia, CaixaBank, Sabadell, BBVA ...). The deaths caused by the Wuhan virus continue to rise. This Monday it had surpassed the death toll from SARS in 2003 (800 people), this Tuesday there are already more than 1,000 fatalities from the cause. The situation worsens with each passing minute and investors remain cautious and expectant.

Meanwhile, we continue talking about politics, with the announcement in Spain of regional elections in the Basque Country and Galicia for April 5. In addition, the resignation of Annegret Kramp-Karrenbauer, the head of Germany's largest party, the Christian Democratic Union, which will no longer run to succeed Merkel as chancellor, is an added source of instability. "The news adds a little more political instability to the Euro Zone, which needs stability since the governments of the block could be called to introduce fiscal stimuli in the medium term," says David Madden, an analyst at CMC Markets.

This bulky election result of Sinn Féin in Ireland is also being analyzed on Tuesday, which yesterday resulted in significant falls in the listed Irish banks. "Investors are worried about the fact that the next government in Dublin is not so business friendly," says Madden.

Meanwhile, oil rebounds 2% today after living another difficult day on Monday because of the concerns regarding the coronavirus. China is the world's largest importer of oil, so operators fear the worst in demand.

Regarding business, small values ​​remain in focus this Tuesday in Spain. Deoleo shot more than 70% in the last session and today rises another 40%. Speculation remains very much alive among small values. In addition, IAG is leading the Ibex driven by the TUI high. The Franco-German tour operator has improved its forecasts and celebrates it on the stock market.

In the macro sphere, the GDP of the United Kingdom in the fourth quarter remains flat, as expected and compared to a 0.5% rise in the previous quarter. Annual GDP rises 1.1% compared to the expected + 0.8% and the previous + 1.2%. In addition, this afternoon and on Wednesday there will be speeches from the president of the Fed, Jerome Powell, in the US Congress.

TECHNICAL ANALYSIS

"We already have our selective at the gates of the resistance that by definition confers the high part of the upward channel of recent months, now in the environment of 9,950 points. Although regarding round numbers and psychological figures we can talk of 10,000 points as the main control zone in the very short term, "says José María Rodríguez, technical analyst at Bolsamania.

"As support we have the 9,700, before resistance. Also highlight the new maximums of the Dax (counted) that is going over, although barely, the historical maximums that reached in the session of January 22", qualifies.

"By values, we already have Santander titles caressing the important resistance zone that it presents in the range of 3.85-3.95 euros. Only above four euros will we have an important sign of strength, beyond the typical rebounds, in the Cantabrian entity, "concludes the expert.