Ibex 35 drops below 10,000 ahead of a week of "obstacles"

In its journey towards 11,000, after surpassing 10,000 last week, the Ibex 35 sees multiple obstacles ahead this week. For now, it closed with moderate losses to end below 10,000, on 9,995.90 points.

The best performer on the day in the index was ArcelorMittal, which gained 4.37%, followed by Acerinox (1.3%). The material makers were the real winners of the day. DIA also rose 0.66% after the news that BlackRock had raised its stake in the supermarket chain to 4.6%.

The heavyweight stocks of the index took a break on Monday after impressive showings last week, falling slightly (Santander -0.53%, Telefónica -0.39% and Inditex -0,49%). Popular was the worst performer with losses of 1.27%, followed by Cellnex (-0.82%) and Bankinter (-0.77%).

We're not exactly in the calmest of weeks. There are several important events this week which will no doubt have an effect on the markets. The meeting of the Federal Reserve on Wednesday is expected to provide a further rate rise. This rise, however, has already been priced in by the market.

"In our opinion, the jobs report in February eliminated the last obstacle for a rise on Wednesda. We do not expect anything new from the Fed apart from this decision. We forecast that they maintain their objective of three increases this year," asserted the experts at Deutsche Bank.

On Wednesday also there will be the first of the European elections of this year, in Holland. Recent polls suggest Mark Rutte is the favourite, while the Freedom Party is in second place.

Brexit will also take centre stage this week, with prime minister Theresa May expected to formally begin the process for the UK's departure from the bloc. The Bank of England will also make an interest rate decision this week.

If that were not enough, Scottish first minister Nicola Sturgeon called for a second referendum on Scottish independence on Tuesday, citing concerns over Brexit.

From a company point of view, investors will look towards Inditex this Wednesday when it will publish, ahead of the open, its annual results. The textile company is unlikely to disappoint, with the FactSet consensus forecasting a profit of 3.181 billion euros.

TECHNICAL ANALYSIS

"A session of transition, of levels consolidation, which is useful to correct/adjust part of the huge movement of last week. In any case we could see this for several days, alternating between light gains and losses," said José María Rodríguez, Bolsamanía technical analyst.

"In fact, in little more than one month our index has gained more than 10% and we know now by experience that such sharp gains have to be consolidated before progressing further," he added. "The levels of resiatance are currently found at 10,400 points."

"Below in the support side, we have a level between 9,900 and 9,925 points."