The Ibex closes in red waiting for the Fed despite the rise of the banks

The Ibex closed with a fall of 0.1% that allowed it to maintain the 9,200 points. The selective, in line with most European stocks has been unable to extend the rebound on the big day of the Fed. And all, after Tuesday closed with important gains in Europe and Wall Street ended the session near record highs. The president of the European Central Bank (ECB), Mario Draghi and US President Donald Trump, encouraged the markets yesterday and there is hope that the president of the Federal Reserve, Jerome Powell, will not disappoint today.

The stocks that have risen most this Wednesday are the banks, with BBVA (+ 2.2%) and Sabadell (+ 2%) at the top but Santander also up 1.2%. While Bankia and Bankinter have done it with more moderate increases. On the other side of the coin we find IAG, which has fallen by 2.5% between the correction after jumping 5% on Tuesday and a report by HSBC in which it predicts more profit warnings for the airlines. But utilities have also been corrected and Enagás has left 2%; Iberdrola, Endesa and Naturgy over 1%.

Investors have opted today, mostly, for the collection of profits after the significant rises on the eve, of more than 1% in all markets. The rebound was served by Draghi, who made it clear that the ECB has not run out of ammunition and is considering embarking on a new round of asset purchases or lower interest rates. The market begins with a cut of 10 basis points before the Italian boss finishes his term on the job.

The rest of the European stock exchanges have opted for the caution in the expectation of the Federal Reserve of the United States (Fed) that faces this Wednesday one of its appointments amid a complicated market situation not seen in these past few years. This despite the situation of full employment enjoyed by the US, thanks to the longest expansive economic cycle in its history and in a scenario of zero inflationary pressures. Thus, only Milan (0.3%) and Paris (+ 0.1%) have risen moderately, while Frankfurt has lost 0.1% and London 0.5%.

TRUMP AND XI MEETING

The Asian stocks, meanwhile, have embarked on their particular party, celebrating this morning Trump's announcement that there will be a meeting with his Chinese counterpart, President Xi Jinping. The Hong Kong stock market has rebounded strongly and has risen by about 2.5%, while in mainland China, Shanghai has risen 1.60% and there was a 2.39% climb in the Shenzhen.

Green has also been imposed on the rest of the continent, with a rise of 1.81% in the Nikkei, given the prospect that the meeting between the two leaders at the end of the month G20 summit in Osaka will activate trade negotiations.

In the currency market, the yuan has risen strongly against the dollar in both Hong Kong and the continent, with a maximum of 6.90 units. Against the euro, the greenback remains at two-week highs before the Fed meeting, above the $ 1.12 that it touched on Tuesday. While the pound remains trapped in five month lows after a new vote in the Tory party ratified Boris Johnson as the favorite to win the leadership of the British Conservatives.

TECHNICAL ANALYSIS

"Quiet session on Wednesday" waiting to react to the words of Jerome Powell this afternoon, says José María Rodríguez, an analyst at Bolamanía.com.

"The chart continues showing good behaviour, although until we don't jump in closing prices above the 9,335 points we will not have anything." Although we should still keep in mind "that what we have before us is an inverted 'head and shoulders' potential that if it is finally confirmed it could lead to moving above the annual maximums (9,588)," he adds.

That "with the permission of the important resistance, in addition to the bearish hollow (daily and weekly) of the 9,410 points". Our neighbors "are much stronger, since they are trading at 1% of the annual maximums, while we are at almost 4% of the same levels". And the main index of the world, the S & P 500, "also trades at 1%, but at historic highs" concludes the expert.

COMMODITIES

For its part, in the commodity market, oil, which rose yesterday due to the tensions arising from international trade, has opted this Wednesday for mild cuts. Brent at 62.1 dollars per barrel and WTI at 53.8. While the OPEC has announced that it seeks to meet in the first week of July in order to consider a somewhat more aggressive policy in the supply cut, as demand is also declining.