The Ibex rises 0.8% thanks to optimism regarding negotiations between China and the US

The Ibex 35 has risen 0.81% to 8,847.30 points and has extended the rebound registered last Friday. Investors are optimistic about the trade negotiations between the US and China. They also celebrate the change in tone of Federal Reserve (Fed) President Jerome Powell.

In terms of values, the hotel group Meliá Hotels has rebounded 3.01% and led the gains in the Spanish selective, followed by CIE Automotive (+ 2.84%), Amadeus (+ 2.54%) and Acerinox ( + 2.5%).

Among the large stocks, Inditex rose by 2.17%, followed by BBVA (+ 0.85%) and Santander (+ 0.82%). In addition, Endesa (+ 0.54%), Naturgy (+ 0.35%) and Repsol (+ 0.1%) also contribute to the positive tone of the index. For its part, Bankia has risen 0.94% at the beginning of the trial of Rodrigo Rato for the IPO of the entity a few years back.

In negative, very few values. Mediaset España has lost 0.41%, followed by Iberdrola (-0.37%), Cellnex (-0.21%) and Telefónica (-0.16%). In the Continuous Market, OHL has picked up 9%. In addition, Euskaltel has advanced 4.84% due to rumors of a possible interest by Orange in buying the Basque telecommunications group.

OPTIMISM ON WALL STREET

The rest of Europe has been dyed green also this Tuesday, with a boost that has them rise by 1% on average after Wall Street extended its big rally last Friday, driven by the good news from Amazon, which has become the most valuable company in the world.

In addition to the great help of the president of the Fed, Jerome Powell, who pointed to a greater flexibility of the monetary policy in 2019: there will be less increases of rates and greater flexibility to reduce the balance of the central bank.

Much attention also to President Donald Trump, who tonight (Spanish dawn) will address the nation to talk about the wall that would separate the US from Mexico, among other issues.

As far as the Sino-US trade negotiations are concerned, Chinese President Xi Jinping's decision to send his chief trade negotiator, Liu He, "seems to have been interpreted as a declaration of intent on the part of the markets that China is taking very seriously the matter to reach a quick agreement, "says Michael Hewson, analyst at CMC Markets. "The question remains whether US officials share that intention now that Wall Street seems to have rediscovered part of its lost 'mojo'," he adds.

In the commodity market, Brent oil rises 1%, to $ 57.95, while in the currency market the euro depreciates 0.3% in its cross against the dollar, up to 1.1443 units. In the debt market, the yield on the Spanish 10-year bond picks up slightly to 1.52%.

TECHNICAL ANALYSIS OF THE IBEX 35

"In spite of the increases in the Ibex of 7% from the minimums at the end of 2018, the truth is that today there is no confirmation, we do not have evidence, that we are facing something other than a rebound. we just have to look back to realize that in the past we have seen similar rebounds and then taken a 'run down' again, "says José María Rodríguez, an analyst at Bolsamanía.

"But it is no less true that at some point what will start with a simple rebound will end up being something more than that, only with time we will know", adds this expert.

"Having said that, we can observe numerous resistance zones within the price range between 9,200 (bearish directive) and 9,260 points (November and December maxima), or what is the same, to be able to think that, perhaps, something is beginning to change in the Ibex we will demand that it jump with force and in weekly candles over 9,300 points as a round figure", concludes Rodríguez