The Ibex moderates its bullish streak after the change of Government and recovers the 9,700 points

The Ibex 35 moderates its bullish streak and regains a certain calm after the turmoil last week marked by political events in Italy and Spain. The Spanish index has risen 1.22% on Monday, to 9,750.3 points. And throughout the session it has even reached 9,830 points.

The most bullish company this session was Ferrovial (+ 3.53%), after Goldman Sachs analysts gave it a target price of 23 euros per share. The price of the construction company at the end of the session was 18.20 euros.

Ferrovial was followed by Acciona (+ 3.40%) and Cellnex Telecom (+ 3.05%). Likewise, Iberdrola (+ 2.98%) has risen significantly, which has also been favored by a good recommendation from Goldman Sachs: its analysts give it a target price of 7.2 euros (the day ended at 6, 35 euros) and a recommendation to 'buy'.

FALLS AND MAIN BOARD

In contrast, the 'red lantern' of this session has been Acerinox, with a fall of almost 1.2%, followed by Bankia (-0.84%) and DIA (-0.52%).

Meanwhile, Duro Felguera has risen close to 20% in the Continuous Market as a result of Petroza Limited, the investment company of the holding Treza Assets Management, showing last Friday its intention to buy 24.3% of the company.

MORE BUSINESS NEWS

In the business world, on Monday there was talk that the Italian bank UniCredit is planning a merger with the French entity Société Générale, according to the Financial Times. A formal approach would not have been made but the president of UniCredit, Jean-Pierre Mustier, has been considering the idea for several months, according to the newspaper.

Meanwhile, in the UK, Clydesdale and the Yorkshire Bank (CYBG) said on Sunday that they have increased their offer for Virgin Money. The agreement would create the sixth largest lender in the United Kingdom.

The French government is also considering the sale of all or part of its 14.3% stake in Air France-KLM, Reuters reported, quoting the French newspaper Les Echos. France would have received the interest from AccorHotels. This is not the first time that the hotel group shows interest in Air France-KLM.

In Spain, the British group DS Smith has announced a friendly takeover of Europac for a total of 1,6bn euros.

OTHER STOCKS

All in all, the Ibex and the rest of the European stock market have risen this Monday (Ibex: + 1.22%, Dax: + 0.4%, PSI20: + 1.21%). And is that after the uncertainties of last week it seems that, at the moment, the 'political waters' of Italy and Spain return to their course and that normalcy will be imposed little by little. Although there are problems on the horizon (see the doubts surrounding the Budgets in Spain or what the radicalism of the new Executive can bring to Italy), the uncertainties of the very short term have been 'overcome' and that is what they like.

That is why on Friday everything went up, including Wall Street, which registered increases of 1%, and that is why on Monday the stock markets continued to rise. Thus, Asian markets have also closed in green this Monday, with the Nikkei at the helm, and the New York Stock Exchange has rises between 0.3% and 0.8% in its three main indices at the end of the Spanish market . As for the risk premium, the Spanish continues to fall (-12.62%, 92.8 basis points).

POLITICS AND ECONOMY

Preliminary results show that in Slovenia an anti-immigration party has won the parliamentary elections that took place on Sunday. The Slovenian Democratic Party, center-left and anti-system, won 25% of the vote.

Likewise, German Chancellor Angela Merkel spoke about the Euro Zone in an interview published on Sunday, in which she supported some of Emmanuel Macron's calls for greater solidarity within the monetary union. However, in the same interview, Merkel also ruled out debt relief for Italy, saying that unity within the Eurozone does not mean it should become a block of shared debt.

Regarding the macro data of the day, the number of unemployed registered in the offices of public employment services in Spain fell in May in 83,738 unemployed compared to the previous month (-2.5%).