The Ibex falls once again and closes under 9,700 points

The Ibex 35 has fallen again this Tuesday and has finished under 9,700 points. Specifically, the Spanish index has fallen under the 9,650 points losing a 1.23%. All of that despite having opened with rises although it has swung downwards rather quickly.

In this way, the red lantern of the session has been ACS (-3.20%), followed by Siemens Gamesa (-2.45%) and CaixaBank (-1.92%). And it’s the bank the one that holds the weight of the Spanish index, it has suffered losses this session despite Goldman Sachs having improved its rating after the publishing of its results.

Another blue chip that has also put pressure on the Ibex has been Telefónica that has dropped a 1.34% on Tuesday. In fact it has been one of the figures that has suffered the rise of the low position of the Ray Dalio fund, Bridgewater Associates, along with BBVA (-1.31%), Iberdrola (-1.05%) and Banco Santander (-1.72%). In this last entity there should also be a mention that has been made known on Tuesday that it will only lay off 20 people of the 1,100 that the ERE is contemplating.

Also Aena has suffered a slight fall (-0.34%) although JP Morgan has published a report about the company pointing to a new possible improvement of its dividend due to the presentation of its results on the 28th of February.

ARCELORMITTAL AND OTHER MARKETS

Meanwhile the value that has risen the most has been ArcelorMittal (+2.13%) after Citi has backed the operations it has announced in India, like the acquisition of Indian Essar Steel. Inmobiliaria Colonial (+0.81%) has followed and Amadeus (+0.73%).

Outside Spain, the falls have also been present in all of Europe except for the London FTSE 100 that has managed to close with a slight rise. And all of that despite the strong Europe rebound and Wall Street and Asia closing on Monday with rises. “The feeling (of the market) has started to destabilize after a tumultuous fortnight and despite the rentability of the bonds have little sign of losing their boost”, points out Michael Hewson, chief analyst in CMC Markets in the UK. “Although earnings are welcome they are still small in the context of the recent losses”, points out Hewson.

On the other hand, Jasper Lawler, expert at LCG has also said the rebound will continue. Nevertheless he specifies that although volatility has reduced compared to last week “these are sessions a lot more volatile than what we are used to”.

In fact, the president of the Federal Reserve in the US, Jerome Powell has assured that this Tuesday the organism will remain alert to the development of any risk for the financial stability. It hasn’t avoided that Wall Street lists in red however, at the close of the Spanish market it listed 0.40%.

MACROECONOMIC DATA

As for the agenda of the day, the January IPC in the UK was at 3% in January over the 2.9% that was expected and going back from the 3.1% in November. Other analysts warn that the stronger inflation data this Tuesday could reactivate the sales.

TECHNICAL ANALYSIS

For José MAría Rodríguez, the session this Tuesday has been a new and clear signal of weakness that places our index at the doors of the support that is last week’s low of 9,580 points”.

“We will find support in the 9,555 points (the rising space of March 1) -9,580 points. Underneath that we won’t discard the 9,250 points”, he adds.

So “the levels of support will have to be watched by most firms and they are at last weeks lows, specifically at Friday lows”. All of this is reduce to “a possible recovery of the prices and we should respect last week slows. Over those the resistances, the most immediate one at 9,900-10,000 points”.