Ibex recovers 10,000 points and puts an end to losing streak
Index rises 0.24% to 10,013.90 points after hitting low of 9,889 points
- Repsol the main drag on the index due to Venezuela
- Tecnicas Reunidas rebounds 5% and Siemens Gamesa 3%
- Banco Santander and BBVA rise 1%, Telefonica also gains
- En castellano: El Ibex 35 recupera los 10.000 puntos y rompe por fin su racha de 10 jornadas en negativo
Actualizado : 18:10
Finally. The Ibex 35 was finally able to react from an important support zone and rose 0.24% to 10,013.90 points. The Spanish index has put an end to an incredible streak of 10 days in negative, in which it was down 5.7% after hitting a low of 9,889.40 points.
One of the keys to the turnaround was BBVA and Santander, which gained 1.3% and 1.25% respectively and moved away from key supports. The behaviour of Caixabank (+1.4%), Iberdrola (+0.63%) and Telefonica (+0.54%) also contributed.
Tecnicas Reunidas was up 5% and Siemens Gamesa by 3%. These two had been punished by investors in recent weeks and both finally managed to finish higher on Wednesday.
On the other side, Respol fell 2.6% owing to the economic crisis in Venezuela. Standard & Poor’s lowered the country’s rating to selective default, and the oil company has specific interests in the region.
OTHER MARKETS AND ECONOMIC DATA
The gains of the Ibex are noticeable as they were produced against the market, as the rest of its European neighbours fell around 0.3%, while Wall Street also opened down.
In other markets, the euro saw its advance halted after an intraday high of 1.1850, and is now down slightly against the dollar to $1.18. In commodities, Brent crude was down 0.7% to $61.75 per barrel, after a report from the IEA which estimated less demand in the next two years. Weekly crude inventories are expected later in the day from the US.
Japanese GDP grew 2.6% in the third quarter, while in the UK unemployment figures rose 4.3%, in line with forecasts. Commercial balance in September for the Eurozone stayed at 26.4bn euros against 16.1bn euros for August.
TECHNICAL ANALYSIS
“A more interesting session on Wednesday after the index broke the support of 9,922 points, with Santander perforating the support of 5.45 euros, and with BBVA attacking the critical support of 7 euros,” said Bolsamanía technical analyst José María Rodríguez.
“In the end, and as we have been saying in recent days, BBVA marked a minimum of 7.02 euros, from there it gained against most of the stocks in the market.”