Ibex falls 0.87% after Huawei ban and Trump's threat to Iran

The Ibex has yielded 0.87% and closed at 9,199 points, in a day that has been conditioned by two main pieces of news. On the one hand, the ban of Google, Intel and Qualcomm regarding Huawei and the consequences of it. On the other hand, an escalation in geopolitical tensions after Donald Trump threatened Iran, saying on Twitter that the conflict in the Middle East would be its "end".

The rest of Europe has recorded drops above those from the Spanish selective, except London, which has fallen by 0.5%. Paris and Frankfurt have dropped around 1.5%, while the Milan stock market has been the most punished by losing 2.7% due to political tension in the Government of Matteo Salvini.

In Asia, most stocks have ended on a positive note except for the Chinese indexes. The talks between China and the US are deadlocked as Trump's pressure on Chinese telecommunications companies intensifies. The decision of Google, Intel and Qualcomm (for now) to suspend their business with Huawei contributes to further complicate the situation. On the other hand, the New York stock exchanges are trading in negative at the close of the Spanish market, with the Nasdaq losing more than 1%.

DIA SLOWS FALLS AFTER A ANA BOTIN'S TWEET

In the Continuous Market, DIA has experienced a day of special relevance for the company in which it might have to be obliged to declare the creditors' pre-contest if it does not reach an agreement with Santander. Just before the closing, the president of the Spanish entity, Ana Patricia Botín, said via Twitter that "finally the President of Letter One has committed to work to eliminate discrimination between bondholders and banks of DIA." Finally, the company's shares, which fell by around 5%, have closed almost flat.

Within the Ibex, only six companies have completed the session in green (Repsol, Acciona, Cellnex, Endesa, Telefónica and ACS). In red, the most hit were Indra (-5.24%), Siemens Gamesa (-2.87%) and Ence (-2.65%).

On the other side of Europe, Ryanair has slumped 4.72% after announcing its lowest annual profit in four years and declaring that profits could fall further next year, as Europe's largest budget airline fights against capacity excess, Brexit and delivery delays from the Boeing 737 Max.

This week will be marked by uncertainty as European, local and regional elections are held on Sunday. Leading European political leaders have urged voters to reject the far right after the scandal in Austria, which has led to the resignation of Deputy Chancellor and ultra-rightist Heinz-Christian Strache.

TECHNICAL ANALYSIS

"The corrective candle with which we started the week does not have any implications whatsoever, it simply moves us away from the important resistance zone of 9,410 points, the weekly bearish hole at the beginning of the month. Over the last few sessions, as long as this gap does not close the trading bias will continue to be lateral-bearish, "said Bolsamanía analyst José María Rodríguez.

"As each week passes is clearer that the corrective scenario (reaction phase) is proportional to the significant increases accumulated since the end of December, now we can only look at the support we have at the lows of last week, the 9,025 points ", Add.

"If there is a clear loss in closing prices, we can continue betting on a fall to the area of ​​8,950 points (50% retracement) and even 8,800 points (61.8% adjustment / retracement of Fibonacci.) Or what is the same, everything that happens within the range between 9,025 points and 9,410 points will have no technical implications whatsoever ", concluded the analyst.