Ibex 35 falls below 10,900 again after IAG and Amadeus tank

The week starts off in red for the Ibex 35, which fell 0.19% and finds itself at 10,884 points. The index falls below 10,900 as a result, with stock markets in the US and the UK closed for bank holidays.

Returning to Spain, Amadeus and IAG picked up the wooden spoons for the day. The IT firm fell 2.59%, continuing to be affected by last week’s news that Iberia will will charge 9.5 euros for the use of its global booking system.

IAG fell 2.47% to 6.8 euros after an IT crash led to several delays and cancellations to British Airways flights, grounding 75,000 people.

Grifols had a poor session as well, dropping 1.15% to 24.6 euros. Some of the heavyweights were in the bottom part of the table too, such as Santander (-0.22%), Inditex (-0.63%) and Telefonica (-0.05%).

Banco Popular once again fell after the bank celebrated one year since its capital injection, its sahre price dropping 68% in the last year.

On the other hand, Tecnicas Reunidas led the gains in the Ibex 35, gaining 1.21% to 34.73 euros. The company suffered due to falling oil prices last week. ACS gained 1.2% and was the second best performer on the day.

BBVA was 0.44% higher at 7.4 euros, Iberdrola gained 0.33% to end slightly above 7 euros, while Repsol was 0.37% higher at 15 euros.

OTHER MARKETS

With the FTSE 100 closed, the DAx 30 was 0.1% higher, but the CAC 40 fell 0.13%. Wall Street was also closed.

Regarding foreign currency markets, the euro was practically flat against the dollar, currently at $1.18. Brent crude rose 0.84% to $52.59 and West Texas gained 0.94% to $50.27.

European Central Bank president Mario Draghi once again defended his stimulus measures, reiterating his belief that it was necessary to maintain a substantial quantity of monetary comfort.

Returning to the US, Donald Trump is once again in the headlines. German chancellor Angela Merkel, reacting to last week’s G7 summit, said that "we Europeans have to take our destiny into our own hands,” without having to rely on the US and the UK.

TECHNICAL ANALYSIS

Bolsamanía analyst José María Rodríguez pointed out that the session was one of a simple transition, with little volume due to the holidays in Wall Street and London.

“We keep seeing the Ibex 35 in the no-man’s land in the short term, in between the support and resistance levels (10,380-11,185), with everything happening within that range of prices.”

He added that we might be weeks away from moving outside that range of prices. Banco Santander may give us a reliable clue in tghe next few days. It all depends on what happens first - the perforation and close of the upper trend or the surpassing of the resistance level.