Banks catapult the Ibex (+ 0.78%) towards the key resistance of 9,410 points

The banks have started the week very strongly, which has catapulted the Ibex (+ 0.78%, 9,402.30 points) to the key resistance of the 9,410 integers. The values that have been most successful have been Bankinter (+ 4.6%) and Sabadell (+ 3.77%). Among the selective, the strong increases in Meliá Hotels (+ 2.57%) also stood out. The Mallorcan hotel group has announced a share repurchase program valued at 60 million euros.

Across Europe, investors are still focused on Brexit. And, as expected, on Saturday nothing was solved. The British Parliament delayed voting for Boris Johnson's plan, which in principle can be held this week.

Johnson has requested an extension (although he has not signed the letter sent to the EU). Some European leaders have been reluctant to give Britain more time, although an orderly exit is widely accepted as the least harmful scenario for both the United Kingdom and the EU.

The British government insisted this Sunday that the country will leave the EU on October 31 despite Johnson's letter. Although the British newspaper 'Sunday Times' reported that the EU will delay the exit until February 2020 if the prime minister fails to get his agreement approved by British lawmakers this week.

Parliament's 'speaker', John Bercow, has refused to grant the government a meaningful vote on the agreement with the EU on Monday, considering that the right conditions to do so are not yet in place. In this scenario, the pound endures in the midst of uncertainty and is now trading with very slight increases against the dollar (+ 0.08%; $ 1,2981).

One of the most positive factors this Monday has been optimism about the trade negotiations between China and the US. Chinese Deputy Prime Minister Liu He has commented that "substantial progress has been made in many aspects" and an important basis has been laid for a phase one agreement.

FAREWELL OF MARIO DRAGHI

The Asian markets have closed mixed after the IMF has indicated that the Chinese economy could fall below 6% in 2020. In addition, Brent oil falls 1%, to $ 58.80, while the profitability of the Spanish bond to 10 years advances to 0.28% and the risk premium remains at 63 points.

All this at the start of a week in which the European Central Bank (ECB) will be the protagonist for Thursday's rate meeting. It is the last one with Mario Draghi at the head, so, more than news about monetary policy, what is expected is an emotional encounter and a week in which a balance of what these years have been with the Italian at the helm of the institution.

As for other geopolitical issues that also focus attention, today we talk about the new electoral victory of the extreme right in Switzerland, while the environmental parties are rising. In addition, in Chile there are already 10 people killed by the riots that have originated in the Government's attempt to increase the price of the subway.

It is also news what is happening with Catalonia, where the riots have continued throughout the weekend, although with much less intensity. The acting president, Pedro Sánchez, has traveled to the Autonomous Community but has not met with Quim Torra.

IBEX TECHNICAL ANALYSIS 35

"We started the week better than expected, since the Brexit agreement reached last Thursday was not been approved in the British Parliament yet, it was expected that the markets would start the week with some nervousness. And the truth is that money continues to enter European stock exchanges and, above all, in the banking sector, something that we have already mentioned in recent days that it was a fact because we have a clear figure back in 'head and shoulders' inverted in the European banking index, the EURO STOXX Banks, "argues José María Rodríguez, analyst at Bolsamanía.

"As for the Ibex, there we have in the famous 9,400-9,410 points. But remember that it is a weekly bearish gap and therefore, to close it, it must be at the end of a Friday. Above, we have a resistance in the 9,500 points: the maximum of the 'reversal' of Thursday of last week, the annual maximums in the 9,588 points and the area of ​​9,700 points, "adds this expert.

"Below, we have the upward gap of 9,246 points (upside 'gap' of the Mars of last week). In short, the European stock markets are still very strong but that does not remove at some point the last excesses are corrected / drained. Well remember that, even to keep going up, we need prices to fall (reaction phases), "Rodríguez concludes.