Ibex loses momentum and fails in its attempt to regain 10,400 points

After the Wall Street open, the Ibex 35 lost momentum in its attempt to recover 10,400 points, although it did hit a high of 10,410 points during the day. The index rose 0.2% to 10,338 points, in line with other major European exchanges.

Inside the Ibex, the best performer was Indra with a gain of 3.8%, followed by Aena (+1.7%) and Acerinox (+1.3%). Telefonica saw its rating reiterated by Goldman Sachs, with its 12-month target price at 10.80 euros, and the company rose 0.8%. Other big stocks had a good day (Santander +0.7%, BBVA +0.5%, Repsol +0.3%).

In addition, Siemens Gamesa was up 0.6% after announcing an order for 150 air generators in China. The news was made public at a time when the company was in need of good news, after it fell 4.5% on Friday.

On the other hand, Caixabank fell 1.2%, followed by Mediaset with a loss of 1.25%, which discounted a negative report about television channels by Credit Suisse. Endesa (-0.57%), Inditex (-0.34%) and Iberdrola (-0.28%) also fell.

In the general stock exchange, OHL fell 3.1% after announcing the China State Construction Engineering is interested in buying the company. Atresmedia was down 3.07% after a negative report from Credit Suisse.

Regarding the macro events of the day, there was little to go on on Monday. CPI for August in Europe remained at 1.5%, in line with what was expected. The PSI 20 rose 1.5% after an improved rating for Portugal from Standard & Poor’s.

The Federal Reserve will meet this Wednesday and there will also be elections in Germany on Sunday. It is increasingly unlikely that the Fed will raise rates for a third time this year, while Wall Street pushed on to new records on Monday.

US President Donald Trump will speak in front of world leaders at the UN on Tuesday, in which he is expected to speak about the North Korean threat.

TECHNICAL ANALYSIS

“An average session which hinged on not getting over the 10,400 point line. It made a go of it but in the end it just fell short. It makes us think that we might be able to continue going down towards 10,250-10,260 points and who knows if it will be able to fill the daily and weekly gap of 10,129 points,” José María Rodríguez, Bolsamanía analyst said.

“Only if we are able to close above 10,400 will the doors open towards lower gap, which is at 10,570-10,80.”