The Ibex yields over 1.28% dragged down by the banking sector

The Ibex 35 has dropped 1.28% at the end of the session, down to 9,061 points, weighed down by the banking sector, which has fallen over 2.4%. In addition, investors fear that the truce in the trade war will be useless, after last comments last night from US officials.

The rest of the main European places have followed the trend of the selective and closed the day with losses (Ftse MIB: -1.31%, Dax: -1.13%, Cac: -0.82%, Ftse -0 , 53%).

The Old Continent was all in red this Tuesday -Asia has also fallen hard this dawn- after US officials explained yesterday the truce between Xi and Trump was confusing and had plenty contradictions. White House counselor Larry Kudlow said the agreement was "down to them" referring to China.

Italy took the hardest hit of this session, after the Eurogroup has manifested in the same line as the European Commission (EC) on the Italian Budget. The organism has recommended Rome to modify them. However, it has maintained the conciliatory tone, appealing to the dialogue between the parties.

Italian Interior Minister Matteo Salvini has said that the foundations of the Budgets will not change, but he also added that "we are not aiming for a collision, it is not our interest". The Eurogroup was also careful when expressing their doubts about Italy and have avoided any mention of financial sanctions.

BUSINESS

In the business world, Dia continues to live its particular roller coaster and returns to the historical lows of 0.62 euros that it reached on November 30. The shares are not far from volatility and have yielded 6.64% on this day, apparently without news to justify it, after earning yesterday almost 2%.

Acerinox (-3.20%) is also on the red side of the table affected by doubts about the commercial truce between the US and China.

In addition, BBVA was the third company with the most losses in the session, falling 3.17%. In the banking sector, Sabadell and Bankia have lost 2.98%; CaixaBank 2.84%; Bankinter 2.72%; and Santander 2.45%.

The best value of the session was Red Eléctrica, with a rise of 2.68%. Behind were two energy companies: Enagás and Endesa, which added 1.74% and 1.08%, respectively.

PETROLEUM

As for oil, its prices continue to 'boil' expectant of what happens on Thursday at the OPEC meeting and also after that agreement between China and the United States. Specifically, the barrel of Brent crude, the benchmark in Europe, adds 0.65% at the close of the Spanish market and is paid at 62.09 dollars; while West Texas rose 0.08% to $ 52.99.

"News of the commercial truce and hopes of a supply cut are driving oil," says Jasper Lawler, an analyst at the London Capital Group. In his opinion, the operators are "increasingly confident" that Saudi Arabia and Russia will apply a substantial cut in production in an attempt to control the excess supply.

TECHNICAL ANALYSIS

"Joy has lasted very little in the Ibex 35 and in the rest of Europe after the truce between China and the US. Everything that was earned this Monday has already been lost, and in the end, the Ibex was unsuccessful it its attempt to overcome (at the close) the significant resistance it had in the last declining maximum (the November highs), at 9,232 points, "says Jose María Rodríguez, analyst at Bolsamania.

"Now the question is whether from here we will seek to fill (or to close) also the upward hole of the 8,917 points, and cross our fingers so that the support of 8,830 points is not punctured, as always, the causes of the renewed weakness is in the steel companies (which yesterday bounced strongly but are still bearish) and the banks, with Santander and BBVA falling close to 3% little else can be done, "he says.

"Regarding the large European indices, they are trying to fill (not close) the upward hole from Monday, which in the case of futures of the Dax and the Euro Stoxx 50 is at 11,320 and 3,179 points, closing those gaps would mean canceling the strength signal on Monday as if the trade-war truce between China and the United States had not taken place " , concludes the analyst.