The Ibex approaches the 9,800 awaiting the avalanche of business results

The Ibex has been covered in green today as well as in the rest of European stock exchanges, in general. The selective increased in value 0.48% to 9,773 points, driven mainly by banks and steel companies. All this waiting for the avalanche of presentation of quarterly results that will be lived tomorrow in Spain.

The most bullish value this session was Arcelormittal (+ 5.40%).Indra has followed at the top of the chart (+ 4.62%), which on Tuesday received two favorable reports from Kepler and Santander analysts. Meanwhile, the third most bullish value was Acerinox (+ 3.46%).

Also, the six banks listed on the Ibex have had a good session. The one that rose the most was Caixabank (2.92%), followed by Bankia (+ 2.60%), BBVA (+ 2.16%) and Banco Santander (+ 1.70%). Bankinter and Sabadell have risen more than 1.1%.

Continuing with the business plan, it should also be noted on Tuesday that Telefonica (+ 0.05%) seems to have reactivated customer registrations in O2 after the latest incidents and that Mediaset has received an improvement recommendation from JP Morgan, although it cut its target price to 9.2 euros from 9.8 euros. The session closed at 6.77 euros per share, at the lows of the day.

Meanwhile, Duro Felguera has risen strongly in the main board (+ 1.1%, at the opening it has shot up more than 20%) after successfully completing its capital increase after the close of the last trading day.

On the other hand, the companies that have fallen the most this session in the Ibex have been Cellnex Telecom (-2.68%), Meliá Hotels (-2.54%) and Red Eléctrica (-2.08%). Endesa (-1.05%) has also dropped after presenting its quarterly results: it has gained 15% more in the first six months of the year regarding to the same period of 2017.

BUSINESS RESULTS

Business results were the focus today, with the energy results in Spain and other companies in Europe, such as UBS. The Swiss entity rises more than 4% after posting a 9% profit improvement in the second quarter and forecasting a "solid" year.

In the United States, the results of Alphabet (Google), which recorded a profit in the second quarter of 2018 of 8.2bn dollars, continue to "kick". However, when accounting for the million dollar fine imposed by the European Union (EU), that benefit plummets to 3.1bn. However, the experts value these figures positively while the titles of the technological giant rise just over 4% on Wall Street.

However, it will be this Wednesday, July 25, when there is a real avalanche of presentation of quarterly corporate results in Spain. Among other companies, they will report to the market Banco Santander, Iberdrola, ACS and Mediaset Spain.

MACROECONOMIC AGENDA

Regarding the macro data of the day, this Tuesday the PMI services and manufacturers of July in Europe have been published. The PMI of the services sector of the Euro Zone drops to 54.4 from 55.2 and is also below the estimate. The manufacturing PMI goes from 54.9 to 55.1. The compound, on the other hand, goes down from 54.9 to 54.3. Experts point out that there is a rebound in the manufacturing sector but the services sector remains weak and weighs in the compound.

Finally, note that the US dollar managed to recover a little after the sharp declines induced by the statements of US President Donald Trump on Friday. However, analysts warn that there is still a concern that the US government will begin to actively bet on a falling dollar should the euro or the Chinese yuan weaken further.

TECHNICAL ANALYSIS

José María Rodríguez, technical analyst of Bolsamanía, indicates that "this Tuesday the Ibex marked a maximum in the session at 9,820 points, thus placing itself above the very short term resistance of the 9,800 points."

"Although we can say that we have a resistance of greater depth in the downturn of the 9,890 points, the bearish gap of the session on July 11. And above, as you know, there are numerous resistances that converge between the 9,970 and the 10,060 points, the upper part of the triangle, and below we have the support of 9,640 and 9,470 points ", adds the expert.

"We will be very attentive to the results that will be published tomorrow, before the opening of the market such as Santander," Rodriguez also warns. "We already know that this title is capable of moving the Ibex on its own, so we will be have an eye on its resistances at 4.82 euros (the last decreasing maximum)".