Ibex begins December with a fall of 1.2% to below 10,100 points

After falling more than 3% in November, the Ibex 35 began December with a loss of 1.23% and fell below 10,100 points again. However, in the week it has risen 0.3%. All the banks closed in the red, although once again Indra picked up the wooden spoon.

The index suffered a strong fall in the last moments of the session after it became known that former US national security adviser is ready to testify against President Donald Trump over the Russia allegations. Instability was the instant reaction from markets.

With respect to Spanish companies, the energy firm was down 4.37%. On Thursday it revealed its strategy for 2018-2020. In the bottom of the table it was joined by Caixabank (-3.01%) and Banco Santander (-2.48%).

The rest of the banks also ended the day with losses. BBVA was down 1.50%, Bankinter by 1.60% and Banco Sabadell by 1.66%, while Bankia was down 0.15%.

Other blue chips saw losses too, including Inditex (-0.57%), Repsol (-0.49%) and Telefonica (-0.50%).

Endesa was down 0.93% after it reported its business plan for 2017-2020, and Credit Suisse reduced its forecasts for the company.

Only eight stocks finished in the black, with the gains being led by supermarket chain Dia (+3.72%). It was followed by ArcelorMittal which was up 0.89%, while Inmobiliaria Colonial was up 0.71%.

OTHER MARKETS

In the rest of Europe there were significant losses, especially with the DAX 30 and CAC 40, down 0.72% and 0.66% respectively.

Wall Street futures saw sell-offs of 0.5% on average, as the latest Senate vote on Trump’s tax reform ran into new difficulties of a delay to Friday.

OIL AND MACROECONOMY

Oil was up 0.8% at the end of the day, with Brent at $63 after the decision of OPEC to extend cuts for an additional nine months, as was expected. The main crude producers in the world also pointed out that there could be an exit to the agreement if the market “hots up”.

TECHNICAL ANALYSIS

Bolsamanía technical analyst José María Rodríguez said the “close of the weekly graph after losses on Thursday and today hardly attract optimism. In fact, we can see that the price would have touched the upper part of the channel and fell again.”

“In any case the levels to keep an eye on are the same as they have been for recent weeks, with 9,900 points as the support and 10,600 as resistance. Only when we rise above 10,600 will we be able to speak of a potential upward curve for the index.”