Ibex back over 10,500 after Yellen speech

A completely different day to Tuesday. On Wednesday, the Ibex 35 recovered its 10,500 level after rising 1.07% (10,560 points). The index began with a narrow graph, as did European markets, but saw itself gaining following Fed president Janet Yellen’s speech, where she said a further rate raise was likely.

Returning to the Ibex, the best performer was Acciona which gained 3.25% at 76.98 euros. Iberdrola followed it after rising 2.92%. The third best performer was Cellnex (+2.45%). Credit Suisse lifted the value of the company by 19%, anticipating gains to 21.4 euros, and it closed at 18.4 euros.

The finance sector had a dissimilar day to the Ibex. Banco Santander rose 0.4% to 5.78 euros. Bankinter recommended backing its expansion on Wednesday. Meanwhile, BBVA closed slightly lower by 0.08% to 7.5 euros and was among the three stocks which were in the red.

Bankia did not have a good day either with the second lowest number, falling 1.14% to 4.5 euros. The wooden spoon for the day though went to Acerinox, which was 2.16% lower at 11.56 euros. The fall was produced owing to the price of nickel, with the value of the commodity falling.

Among the better performers, Telefonica gained 1.32% to 9.13 euros, its second consecutive day higher following its fall below 9 euros on Monday. Inditex was 1.71% higher, scraping 34 euros. Mediaset closed 0.24% lower to 10.3 euros, after falling 17% in the last three months.

OTHER MARKETS

The rest of the European markets increased their gains after Yellen’s speech. The FTSE 100 rose 1.16%, the DAX 30 by 1.6% and the CAC 40 most of all by 1.72%.

Wall Street was higher by almost 1%, with the Dow Jones hitting a new record of 21,580.79 points. In addition, Amazon recovered $1000 per share after Prime Day.

However, what is moving the market is the speech of the Fed President. "With further gradual adjustments in the stance of monetary policy, the economy will continue to expand at a moderate pace over the next couple of years, with the job market strengthening somewhat further and inflation rising to 2%,” Yellen explained to the Financial Services Committee.

The euro was seen affected by Yellen’s words against the dollar. The common currency rose against the greenback but reversed its gains to fall 0.5% where it now sits at $1.14.

Oil was seen higher. Brent rose slightly by 0.1% to $47.56. While West Texas rose by 0.62% to $45.32.

TECHNICAL ANALYSIS

José María Rodríguez, technical analyst at Bolsamania, said that appears that finally “the strong levels of overselling take effect and provoke significant rebounds in stocks.” At the same time we see European futures surpassing resistances, which are now at weekly highs and moving away from the danger zone.

“What that means is that we don’t have definitive confirmation yet, but the possibility exists that we have seen the lows of the corrective phase or reaction phase,” the expert said.

“Let’s see if we are capable of leaving that phase behind, and not discarding the possibility of approaching the resistance of 10,900 points.”