The Ibex is unable to rebound, with BME as the absolute protagonist

The Ibex 35 has closed with very moderate falls (-0.04%. 9,258 points) after the 1.5% falls last week, caused by political uncertainty in Spain. Investors have been very aware of BME, which has shot up 38% after the Swiss group SIX has launched a bid at 34 euros, at the same time it has been confirmed that Euronext and BME are negotiating a possible offer. The company has closed at 35.06 euros because the market is discounting a war of opas.

BBVA (-0.6%) has also been protagonist this Monday. Francisco González, his former president, has faced the interrogation of the judge and the prosecutor about his alleged involvement in the contracts made by the bank to Grupo Cenyt, the company of the ex-commissioner Villarejo.

González has rejected from the beginning any responsibility related to this matter and has maintained his statement with this approach.

In addition, the Villarejo case has taken another twist after El Confidencial has published that Iberdrola (+ 1.2%) hired him to spy on Florentino Pérez when ACS wanted to buy the power company. The president of Real Madrid has appeared as a private indictment in the separate piece on this matter that has opened the National Court.

TRADE WAR UPDATES

Internationally, China and the United States remain in the spotlight. Chinese Deputy Prime Minister Liu He spoke on the phone on Saturday with US Treasury Secretary Steven Mnuchin; and the US trade representative, Robert Lighthizer, in connection with a "first phase" trade agreement, according to the Chinese state media outlet Xinhua.

The two sides had "constructive discussions" about "the central concerns of the other" and agreed to remain in close contact. The call was made at the request of Mnuchin and Lighthizer, according to Xinhua. White House economic adviser Larry Kudlow said Friday that Washington and Beijing were close to reaching an agreement.

However, pessimism has been installed among investors after Chinese officials have leaked to CNBC that they are not optimistic about a trade agreement, due to Donald Trump's refusal to withdraw the tariffs imposed in recent months. Wall Street falls moderately after setting record highs last Friday.

On the other hand, the United States has called for moderation while riots continue in Hong Kong. On Monday, police besieged a university where hundreds of anti-government protesters were dissolved, according to Reuters.

In other markets, Brent oil falls 1.8%, to $ 62.12, due to the latest information about the pessimism surrounding the trade war. In addition, the euro increases in value 0.3%, up to $ 1,1086, while the profitability of the 10-year Spanish bond has relaxed to 0.41% and the risk premium has fallen slightly to 76 points.

IBEX TECHNICAL ANALYSIS 35

"We have started the week trying to close the bearish gap of Wednesday of last week at 9,307 points. 'Gap' that we have partially filled and after doing so we have turned down strongly. Which reaffirms us that the resistance to beat in the short term to somehow cancel out the very short term bearish bias is there, right in the bearish gap, "explains José María Rodríguez, an analyst at Bolsamanía.

"If closed, we will have a new sign of strength in our selective, before what is probably a new attack on the resistance of 9,500 points. Below, on the side of the supports, we have 9,130 ​​points (the minimum of the last week) and below the October lows at 8,850 points, "adds this expert

"In short, it is true that our Ibex is more affected than the rest of the European indexes (something that comes from afar, let's not fool ourselves), but as long as the European stock exchanges continue trading in the area of ​​annual maximums and Wall Street in all time highs it is difficult for us to fall with force. But, I insist, as long as we are not able to close the bearish 'gap' last Wednesday, we will continue to be more bearish than bullish, "Rodríguez concludes.