Ibex trades flat as dollar rally continues

European shares are trading flat on Tuesday as the dollar continues to rise near the 2015 high, ahead of Trump's possible inflationary policies. Ibex trades around the level where it finished on Monday, near the 8,700 points, but it is performing worse than its European peers.

In Spain steelmakers continue to take advantage of the arrival of Donald Trump to the White House. Markets are expecting a package of fiscal actions and spending expansion that will spark the US economy. In this environment, companies like ArcelorMittal and Acerinox can take advantage. Both rose strongly on Monday, leading the Spanish index as the best performing shares of the session.

SHORT TRADERS ARE BACK

In the opposite situation could be found shares ​​such as Banco Popular and Telefónica. The update of the registry of short positions in the National Securities Market Commission (CNMV) leaves no room for doubts: bearers expect further declines in the price of Telefónica and Banco Popular.

In the framework of monetary policy, the Federal Reserve of the United States (Fed) will closely follow the first steps of the new Republican president of the United States. Analysts are predicting that Donald Trump will land a fiscal stimulus package that will push the Fed to raise interest rates.

DATA EVERYWHERE

Tuesday will be a day loaded with data. Germany's GDP for the third quarter has stood at 0.2%, a tenth less than expected. IPC data have also been published in France (0%), Spain (+ 0.7%) and later in later will be published for UK. This morning will be published also the the German ZEW investment confidence index, followed by quarterly GDP of the euro zone. In US, this afternoon will be released retail sales for October.