The stocks deflated in the final stretch although they still celebrate the pro-EU triumph

Falling session for the stocks of the Old Continent. The European stock exchanges have reacted this Monday with rises to the result of the European elections, although they have been reducing the gains in the final straight line of the day. (Ibex: + 0.46%, Cac: + 0.21%, Dax: + 0.42%, Ftse Mib: -0.24%) Optimism arrived to the equity markets after the victory of the Europeanists who will continue to decide the future of the European Union (EU), although the Liberals and the Greens will now be key after losing the majority coalition formed by the European People's Party and the Socialists.

So, calm in the European ranks, although it is true that the populists and eurosceptics have won in very important countries, such as France, Italy or the United Kingdom.

"The influence of Eurosceptic groups will remain limited, with support of approximately 23% (compared to the previous 20.6%)." The loss of support for Social Democrats and Conservatives, who have lost the absolute majority for the first time since 1979 , is largely compensated by the increased support for the Greens and the Liberals, which means that the general sentiment in Parliament will continue to be favorable to the EU, "say the Danske Bank experts. "However, in France, President Macron's party, En Marche, lost the race against the far-right Rassemblement National, calling into question its great plans for internal reforms and greater integration in the EU," these analysts add.

At national level, the experts stress that, although PSOE has won the regional and municipal elections, PP didn't completely plummet mainly because it has won in Madrid and because it will be able to win over 22 municipalities with the support of Ciudadanos and Vox. This also complicates Pablo Iglesias' attempts to make demands to Pedro Sánchez in order to form a Government.

EVERYTHING IS EVEN MORE COMPLICATED IN THE UNITED KINGDOM

In the United Kingdom, the result of the European elections complicates an already chaotic situation. In the midst of the power struggle in the Conservative Party, now the leader of the Brexit Party, Nigel Farage, claims his share of the pie. On the other hand, the favorite candidate to replace Theresa May, Boris Johnson, has already made it clear that on October 31 the UK will leave the EU, with or without agreement. Corbyn, for his part, asks for general elections or a second referendum so that Britons "give their verdict on the Brexit."

However, same as the stock markets, the currencies have remained calm on Monday. The euro has not flinched, experts say, like the pound, which has been weakening for weeks. However, it is true that investors have not had any FTSE references since it's closed for Sprin bank holiday, nor from Wall Street also closed due to Memorial Day.

In other matters, it should be noted the rise in the stock market of Renault and Fiat Chrysler (+ 12%, + 8% respectively) after confirming this morning that they are holding negotiations for a possible alliance. "We hope that this news feels good to the sector, and that listed companies are encouraged to rise today," say the experts of Link Securities.

And in the Ibex, Ence (+ 2.1%) and the Meliá hotel (+ 1.84%) were the most bullish values. On the opposite side, the Colonial and Indra real estate have fallen 0.9% becoming the red lanterns of the day. While in the continuous market, Berkeley Energía, with a rise of 35.8%; Grupo San José, which has risen by 4.8% and the OHL construction company (+ 5.7%) have also celebrated the election results on the stock exchange.

TECHNICAL ANALYSIS

For José María Rodríguez, Bolsamanía's technical analyst, "the Ibex closes clearly away from the highs of the day and this is never a sign of strength precisely, and more so when we can see how the price ended, at the close, below the guideline short bassist ".

"Building, in addition, a fourth maximum decreasing level since it marked annual maximums in the 9,588 points, now everything points to going back to the important support area of ​​9,025 points, where the short term key is. Support would lead us to fall to levels close to 8,940 points and below the area of ​​8,800 points, in what would be a second corrective impulse. "

"And above, the same as in these past weeks: we have the bearish gap of 9,410 points, as we have been commenting again and again in recent times and only going over 9,410 weekly candle points will make us look towards the Ibex with different eyes. Meanwhile, what we have are simple rebounds within a clear corrective phase, and in theory a proportional adjustment of the whole previous rise from the December minimums "he concluded.