Ibex still unable to recover 10,900 points with Popular to the fore

The Ibex 35 still cannot reach that 10,900 level. On Tuesday, the index fell by 0.05% and finds itself at 10,879.7 points. Once again, Banco Popular was to the fore after losing 6.21% to 0.31 euros. It was a volatile session for the bank, which saw gains of more than 6% at the beginning of the day, and it now requires an urgent solution on its future.

It will be a decisive day for Popular, whose executive team will meet in Frankfurt with officials from the banking authority.

In the lower part of the table it was accompanied by ArcelorMittal, which dropped 2.5% to 18.3 euros per share. IAG was the third worst performer after a loss of 1.54% to 6.7 euros.

For now, Popular’s fortunes did not spread to the other banks, even though they finished lower. Regarding the big banks, BBVA fell 0.94% and Santander by 0.17%. Banco Sabadell fell 0.44%, Bankia by 0.36% and Caixabank 0.66%. Bankinter fell slightly less of 0.05%.

On the advances side, Indra led the gains with a rise of 1.77% to 12.97 euros, followed by Acciona and Endesa, which were 1.54% and 1.29% better off respectively. Repsol rose 0.27% after Barclays increased the company’s valuation. Inditex closed with slight gains of 0.07%, with Telefonica 0.48% higher.

OTHER MARKETS

European markets closed in the red. The DAX 30 fell by 1.06%, while the CAC 40 was 0.89% lower. The FTSE 100 fell 0.06%, but the PSI 20 rose 0.68%.

Investors continue to look towards two key events this week, both on Thursday. The European Central Bank meeting and UK general election which are likely to have a bearing after tension caused by attacks in Britain last week.

The diplomatic crisis between Qatar and other gulf nations continues to affect markets, with oil firms struggling. Germany have now said that it has proof that Qatar was involved in acts of terrorism, but did not specify the event.

At the hour of closing in Europe, oil was registering indecision, with a barrel of Brent finding itself at $49.48. During the session, the news had barely come out about Qatar when the price rose with force, but it has lost since.

Wall Street was seeing light losses in the early part of the day having hit record highs last Friday.

TECHNICAL ANALYSIS

“Another session of not very much happening in the Ibex, which has been for two weeks now caught in a narrow lateral movement between 10,800 and 11,000 points,” said Bolsamanía technical analyst José María Rodríguez.

“Even if the Ibex 35 heads to 10,400 points it would continue the same way as it would with 11,100 points. Only if it goes above annual highs of 11,185 points would we see the start of a new upward trend.”