The Ibex closes flat in spite of the uncertainty about the elections

The Ibex closed this Wednesday with a slight drop of 0.01% and still does not recover the 9,000 points after a day in which political uncertainty has made it act somewhat more cautiously than the rest of Europe, where the main indices have closed with increases above 0.5%.

Politics have been the main protagonist of the day, after the parliamentary rejection of the General Budgets proposed by the Government have unleashed the rumors about early elections. On Friday, the President Pedro Sánchez will speak after the meeting of the Council of Ministers to announce his decision.

The Ibex has managed to remain relatively on the margin of the political ups and downs in recent days, as have the bond and euro markets, which Monex analysts attribute to the absence of populist parties capable of capitalizing on the current political instability in Spain.

"The lack of response from the markets is caused by the fact that there is no populist movement against the European Union in the country at this time that is strong enough to achieve power," says Bart Hordijk, analyst at Monex Europe. "If these games started to gain ground in the polls, the feeling of risk on Spain could change."

The steelmakers ArcelorMittal (+ 3.75%) and Acerinox (2.9%) have been the values ​​that have most neglected the general trend of the selective highlighting among the most bullish, followed by Sabadell, which has closed with a rise of 2.2%

On the other end of the selective, Naturgy (-2.4%) and Red Eléctrica (-1.6%), which on Tuesday bought Hispasat from Abertis for 949 million euros and today announced that it is open to the entry of new partners, have been among the values ​​that recorded the biggest losses in a bad day for the entire energy sector. BBVA closed 1.9% at the close, being the second most bearish value of the day.

Repsol (+ 0.5%), on the other hand, managed to close above the selective, after HSBC maintained its bet on the Spanish listed company, reiterating its recommendation to 'buy' and raising its target price to 18 euros from 17.7 euros. The oil company has joined, also this Wednesday, to BP to request technological neutrality and regulatory stability to the Government.

TECHNICAL ANALYSIS

"The session of the equator passes without pain or glory, we close planes and therefore without technical implications of any kind, simply, if at all, that we are very close to the upper part of the short term bearish channel. No-man's zone, halfway between the support of 8,826 points and the very strong resistance of 9,260 points, and as long as we remain within this price range we will not have any clue as to what the next movement in trend may be ", explains the Bolsamanía technical analyst, José María Rodríguez.

"And meanwhile, within the currency market, the renewed weakness of the 'single currency' in its crossing against the 'greenback' draws attention. In fact, it seems that it has set course towards the support it presents in the minimums of 2018: 1,12140. The drilling of this, can be used for the euro to go to the next major support, the upward gap of 1,075 (bullish gap of the session on April 24, 2017), "concludes Rodriguez.

CONTINUED OPTIMISM IN WALL STREET

On the other side of the Atlantic, optimism continues on the trade negotiations between the United States and China, even more so after Donald Trump announced that he is studying postponing the March 1 deadline for the imposition of tariffs on the Asian country. It also seems likely that there will not be a shutdown, since it seems that finally there will be an agreement between Republicans and Democrats. Wall Street is trading at this time in green after advancing on Tuesday by 1% at the close.

"The rally in the markets continued during the night in Asia, and the catalyst for these gains has to do with the optimism surrounding the talks between the US and China, a deal is expected soon and this will boost a global economic recovery," say the experts from Danske Bank this Wednesday.

For the rest, this Tuesday several members of the European Central Bank (ECB) spoke. Highlights Philip Lane's statements, who stressed that the economy of the Euro Zone is "quite strong" and suggested that the current setback is temporary.

Brexit today has scarce news beyond the warning that Ford Motor Co. has made to Prime Minister Theresa May that, if there is a no-deal Brexit, it would transfer part of its production outside the United Kingdom, which would mean the loss of 7,000 jobs in the country, according to Bloomberg.

Here, in Spain, beyond the foreseeable call for early elections (the date of April 28 is considered), the trial of the leaders of the 'procés' has continued. This Wednesday has seen the second session of a process that will be extended over the coming months and that will have to see to what extent the political tension in the country increases.