The Ibex closes with earnings for two weeks in a row thanks to Draghi and Merkel

Little by little the Ibex 35 is closing on 10,500 points. The selective has closed on its second week of January in positive with a rise of 0.5%. This Friday it has also rose a 0.26% and has placed itself on the 10,462 points. The main motors of the Spanish index have been the proceedings of the Central European Bank and the road to the rise in rats and the beginning of an agreement for the German government.

DIA has been the highest riser with an increase of 4.25% which brings it back from its falls these past sessions. ArcelorMittal has followed with a rise of 1.58% up to 30.6 euros. Deutsche Bank has predicted the rises of the steel company up to 36 euros, which increases the previous target price almost a 10%.

BBVA has been the third value with best results thanks to a rise of 1.42%. The entity that is led by Francisco González finished in red this Thursday in spite of the general rises in the sector after the proceedings of the BCE. On the other hand, Banco Santander has closed with a rise of 0.1% up to 5.9 euros. The entity has claimed the 25 million euros for variable retributions to the ex presidents of Popular Ángel Ron and Emilio Saracho.

On the side of the rises, this Friday, Inditex has been the second company with more weight on the Ibex that has gone up a 0.49% which makes it closer to 29 euros after registering two bad sessions. Telefónica has also closed in green (0.23%) that has had the same behaviour as the textile company. Endesa has also closed with a rise of 0.08%. Berenberg has informed it bets on the company and has upgraded its rating to buy.

On the other hand, Ferrovial has been the red lantern this session with a fall of 1.53% down to 19 euros. Técnicas Reunidas has dropped a 0.98% and Cellnex a 0.74%, they have been two of the worst values today. It hasn’t been a good session for other banks like Bankia that has dropped a 0.18%.

In the continuous market, Abengoa has been the main character this session since the Audiencia Nacional has absolved the directive of the company of an unloyal administration crime or a wrongful appropriation of the payment of compensation. The A stocks of Abengoa have fallen a 1.18% while the B have gone up a 0.72%.

OTHER MARKETS

The stocks of the Old Continent have closed on a positive note, boosted by the start of an agreement between Angela Merkel and Martin Schulz to form a coalition government. The DAX 30 has gone up a 0.32%, the CAC 40 a 0.52% and the FTSE 100 a 0.2%.

Another great character of the session has been the euro, that has jumped over 1.21 dollars for the first time since 2014. The rising figure of the euro started on Thursday, after the proceedings of the meeting of the month of December of the monetary supervisor that will be ready to steer the wheel in its monetary policies and go towards the rise of rates. At the time of the European market close, the euro went up a 0.86% up to 1.2146 dollars.

Wall Street has listed rises which allow its main indexes to list historical highs again, JP Morgan and Wells Fargo have presented their accounts of 2017 in which the impact of Trump’s tax reform law was revealed. In the first entity this impact was negative since it has lost a 37% but in the second entity it was positive with earnings og 17%.

As for the data of the agenda of the day, the Spanish IPC has reduced its interanual rate down to 1.1% in December, a decimal less than expected. The US IPC has shown that prices rose a 2.1% in 2017 in line with the provisions that the consensus of the market managed, after rising a 0.1% in December.

TECHNICAL ANALYSIS

“The Ibex 35 closes far away from the maximums of the session but it still maintains without straying too far from the control zone, the important resistance of 10,600 points”, points out José María Rodríguez, technical analyst in Bolsamania. As you know, only over this will we have a before and after (in theory) as a consequence of the confirmation of a clear figure og double bottom with a projection in the annual highs of 2017, the 11,185 points. “ But before we must know that there is still the possibility to look for the support zone of the 10,300 points where we have the rising spot that has to be filled in (not all of the spots have to be filled in)”, he points out.

In any case what really matters this week is that we have left behind “the banks have woken up and many are going over important resistances (Bankinter, Sabadell, CaixaBank, Santander). If only Inditex and Telefónica stop falling so that all our big fishes attack the November highs”, adds José María Rodríguez. We won’t lose Repsol from our sight that lists at the doors of his historical highs (adjusting the dividends), in 16.055 euros.