Ibex rises 2.16% this week at 9,000 due to progress from US-China trade talks

The Ibex has added 2.16% in the whole week, thanks to the good session this Friday. The selective rose today 1.80%, which has allowed it to return to 9,000 points (9,069) that it lost last December 6. This rise is due to the possibility that the United States will cut tariffs on China, a news that extended yesterday the rebound of Wall Street and that has boosted Asian stocks this morning.

As reported by The Wall Street Journal on Thursday, the US has proposed lowering tariffs on Chinese products during the trade negotiations with the Asian giant. The big issue of the market (with permission from Brexit, which is closer to Europe) seems to start to clear up and investors celebrate.

The idea of ​​cutting tariffs seems to be being driven by Treasury Secretary Steven Mnuchin, and is opposed by the US trade representative and leader of the negotiating team, Robert Lighthizer.

"It's complicated that this approach ends up going forward, although we believe that only the fact that part of the US negotiating team raised the possibility of reversing some of the measures taken to put pressure on China is positive and once again shows that the Government US is serious in its intention to reach an agreement with China in the commercial field, "say the experts of Link Securities.

Jasper Lawler, head of analysis at the London Capital Group, recalls that this is not the first time that progress has been made between the US and China and believes that investors will take it with "caution". At the same time, it recognizes that the increases that are being seen this Friday reflect the extent to which the market is conditioned by this issue. "Any evidence that the US and China are close to a trade agreement results in a movement of riskier assets," he says.

NEW VOTE BREXIT ON JANUARY 29

Regarding the 'great European issue', Brexit, this Thursday it was learned that the next vote on Theresa May's plan will take place on the 29th of this month. The new proposal of the British Government will be known next Monday.

From Link Securities they say that the uncertainty is at an all time high and believe that the "political chaos" will continue for now in the United Kingdom. "More and more European business groups are raising their voices, warning of the negative impact on their businesses and on the economy of the region that the United Kingdom will have an exit from the unpaid EU", warn these experts.

COMPANIES AND OTHER MARKETS

As for the rest, this Friday there is still talk about the results of Netflix, which drop by around 3% after publishing its fourth quarter accounts. The online content platform has announced a profit per share of $ 0.30. In the US, it is also news that Tesla has announced a job cut of 7% and falls more than 9%.

In Spain, the subject of the day is the supposed (not confirmed) takeover that Orange would be studying about Euskaltel. The Basque operator has shot up 8.99% on the Continuous Market this Friday.

Within the Ibex, only two companies closed the session in negative: Tecnicas Reunidas (-0.98%) and Caixabank (-0.24%). On the earnings side, Mediaset (4.96%) was the most bullish value, after falling more than 6% yesterday. Behind were Amadeus and ArcelorMittal, which rose 3.54% and 3.44%, respectively.

In Europe, the news is the 'profit warning' that Ryanair has launched, which has weighed the other companies in the sector for much of the session, such as IAG, although this has managed to turn around driven by the good behavior of the Ibex and has added 0.26%.

In the commodity market, the barrel of Brent crude, a benchmark in Europe, has rebounded 2.47% at the close of the Spanish market, to 62.69 dollars. Meanwhile, in the currency market, the euro has fallen to $ 1,1358.

TECHNICAL ANALYSIS

"We already have our selective to the doors of the important resistance that we have been talking about throughout the week: the 9,150 points. We will see how the price behaves in the face of this resistance," says José María Rodríguez, analyst at Bolsamania

"However, we must know that we have a resistance of greater significance in the 9,265 points, which are the highs of November and December, only above this we will leave the door open to the possibility that the index may be building something more than a simple rebound," he points out.

"However, I want to keep the renewed strength of the Inditex bonds, which also presents potential weekly bullish divergences, and when these occur, prices usually tend to continue climbing positions decisively in the following weeks", concludes the analyst.