Ibex shrugs off Draghi euphoria and falls below 10,600 again

The Ibex 35 closed 0.22% lower on Thursday at 10,564 points, despite the rise which was produced following the word of ECB president Mario Draghi.

After maintaining rates as they were at 0%, -0.40% for deposits and debt purchases of 60bn monthly, Draghi said that the stimulus was still necessary in order to provoke inflation. The euro however ignored the tone and rose 1% to $1.1630, highest level since August 2015.

Among the better performers on Thursday were Caixabank (+1.21%), Banco Santander (+1.15%), which finished its capital injection today, and DIA (+1.14%), after Macquarie estimated a potential upside of 34% for its market price.

Regarding the losses IAG fell 5.20% after oil price rises and the good results of EasyJet. Aena accompanied the airline with a fall of -2.50% after it became known on Thursday that British fund TCI was party to an attempted acquisition of Abertis, while the government which controls 51% of the airport manager through Enaire discarded the option of its purchase, according to Expansión. ArcelorMittal completed the bottom three after slipping 2.17%.

In Spain Iberdrola reported its quarterly results on Thursday and finds itself among the worst performing stocks (-2.11%). The electric firm earned 4.2% more in the first quarter, with the company saying that less operating results compensated for the results of Gamesa thanks to the merger of Gamesa and Siemens Wind.

All this arrives with the good close on Wall Street this Wednesday. New record highs for the Dow Jones, the S&P and the Nasdaq. During the session at the other side of the Atlantic will be results of major tech firms. The first will be Microsoft, on Thursday, followed by the rest until Apple on 1 August.

Outside economic terrain, US senator John Mccain has been diagnosed with brain cancer. Doctors discovered the tumour last week when McCain was brought in to remove a blood clot in his eye. Poland was also in the news after the EU warned the country about its clear authoritarian drift. The European Commission alerted that it is becoming closer and closer to activating the process of suspending the voting rights of the country.

TECHNICAL ANALYSIS

José María Rodríguez, Bolsmanía’s technical analyst, said that “the session moved between quite a narrow range of prices despite the fact that it’s accustomed to moving sharply up or down around the speeches of Mario Draghi. Today would have been the exception to what we have usually been accustomed to. Technically speaking the Ibex is in no man’s land, far from the significant support of 10,380 and also from the most immediate resistance of last week (10,704).”

“Thursday leaves me with the sensation that the flagship of the market holds the key - Banco Santander. It rebounded on Wednesday from the important support zone. After the end of its capital increase, it can be said that its shares take a little weight off the shoulders of the Ibex.”