The Ibex 35 rises 1.13% driven by the truce struck between US and China

The commercial truce reached this weekend by the president of the United States, Donald Trump, and his Chinese counterpart, Xi Jinping, has boosted the Ibex 35. The main indicator of the Spanish stock market has ended the session with a rebound of 1.13 %, up to 9,179 points, although it reached the resistance of 9,230 points. The rest of the main European stock exchanges have also accumulated over 1% (Dax: 1.88%, Ftse: 1.23%, Cac: 1%) at the end of the session.

There will no longer be an increase in tariffs by the United States to China on January 1. Instead, both powers have given themselves three months to negotiate and close a trade agreement, while showing their optimism.

A truce was the best scenario for this meeting and it was fulfilled. According to the analysts, if this happened, the markets would react with strong increases. Asia has also done well this morning, with increases between 1% and 2.5% in the case of Chinese exchanges.

The second element that would be influencing the Ibex on Monday is the surprise election result in Andalusia. The political turn to the right, and that probable pact between the PP, Ciudadanos and Vox, is something that the market, more comfortable with a government of this ideology, positively values.

BUSINESS

In this context, ArcelorMittal ended the session as the most bullish value, adding 4.37%. The steel company has been one of the companies that has suffered more on the stock market with the trade war between the US and China, so after the sharp falls, it makes sense that it is also one of the ones that are rebounding more strongly.

On the earnings side, Gamesa also stands out (3.57%), which has been awarded a 487 MW project in Belgium. In addition, Cie Automotive (3.15%) was the third most benefited value of this session, since the US is its second largest market.

On the red side of the table, the biggest drop was experienced by Inmobiliaria Colonial, with a decrease of 1.80%, followed by Cellnex and Enagás, which fell 0.86% and 0.62%, respectively.

OTHER MARKETS

The barrel of Brent crude, the benchmark in Europe, has rebounded by 3.18% at the close of the Spanish market. Thus, it has overcome the barrier of 60 dollars, it is currently priced at 60.89 dollars, awaiting the meeting of OPEC (Organization of Petroleum Exporting Countries) that is celebrated this Thursday in which it is expected a production cut led by Saudi Arabia.

On the other hand, in the currency market, the euro has added a slight 0.17% and has changed to 1.1353 dollars. During this week, we will also have to pay attention to the evolution of the pound, since vote on the Brexit agreement on 11 December could make it swing upwards or downwards.

TECHNICAL ANALYSIS

"Very interesting how we started the week and the month of December. We left a bullish gap in the 9,077 points that may end up being a weekly one, which always gives more strength to the 'gap' in question. For now we already have a first increasing maximum, that is not little ", emphasizes José María Rodríguez, analyst of Bolsamanía.

"In fact, since the maximum in May there have been seven consecutive decreasing highs, and after this Monday's session we have broken that streak, now we have to see if we will be able to jump over the resistance we have at 9.340-9.350 points: the bearish guideline that joins the decreasing highs since May".

"If we look at our European neighbors, this will be confirmed with small figures back up (in the form of 'double floor'), if they managed to exceed the highs of early November. Meanwhile we still have nothing, just simple rebounds within an impeccable trend. We are going little by little, step by step, "says the analyst.