Ibex salvages 10,000 points despite German political instability

The Ibex 35 began the week with moderate gains of 0.15% to 10,025.50 points. The day was marked by the failure of Angela Merkel to form a government in Germany and for the offer made by hotel chain Barceló for NH Hotel Group.

Liberals in Germany broke off the negotiations to form a government with Angela Merkel and the Greens . The chancellor indicated that she prefers new elections over forming a minority government.

In forex, the euro fell 0.3% to $1.1750, with the common currency reflecting the pressure on euro markets, while also hitting new lows of two months against the yen.

In corporate news, NH Hotel was inarguably the big news of the day. The hotel chain received an “unsolicited demonstration of interest from Grupo Barceló for a merger of the two companies”. NH gained 11.8%, while Grupo Barceló said the price offered was 7.08 euros per share.

In the Ibex, Siemens Gamesa tanked 5% once again. The company prolonged its dire run in the markets to fall below 10 euros per share, despite a restructuring plan announced weeks ago. DIA (-1.17%) and Bankia (-1.13%), Bankinter (-1.08%) and BBVA (-0.99%) were the other stocks which lost ground.

On the other hand, Melia Hotels shot up 4.57% after a buy recommendation from Banco Sabadell and also due to the NH/Barceló news. Cellnex gained 3%, while Tecnicas Reunidas was up 2.24%. Among the big stocks, Inditex was up 0.8%, Repsol 0.64%, Telefonica 0.53% and Santander 0.31%.

In Spain, the European Commission removed Barcelona as the headquarters of the European Medical Agency. The Catalan capital was the favourite in September but the crisis in the region has cost it.

For the rest of the week news from the US will arrive about the passage or otherwise of tax reform from the Republicans and Donald Trump. Thursday is Thanksgiving in the US and markets will not open, while shopping holiday Black Friday will also take place.

TECHNICAL ANALYSIS

“We started the week with calmness. Not many technical implications, while European futures anticipated a fall of 0.6% on average, but they are going to close near session highs,” explains Bolsmanía analyst José María Rodríguez.

“Once again the Ibex is behind, but that is nothing new. Away from punctual rebounds what is true is that there is no future catalyst while we have the Catalan elections on the horizon. Meanwhile, the support level remains at 9,900 points from the rebound of last week.”