The Ibex closes January over the 10,400 and with a slight rise of 3.8%

The Ibex 35 has closed the month of January with a rise of 4.06%. The index has gone up 0.22% today up to 10,451.50 points, in the the session in which Banco Santander (+0.88%) has presented its annual results. The monthly earnings are very positive for the index although a bit bitter because the week marked the annual highs in a close at 10,609 points, a key resistance level that for now hasn’t been bested.

Banco Santander and its president Ana Botín, have been the two main characters of the day. The entity has earned 6.6bn euros in 2017, a 7% more than in 2016. The bank has been optimistic for the next year and has highlighted their objectives.

The president of the entity, Ana Botín has said that there is increases expected in all the main markets and has said it has “great trust that we will all fulfill our aims for 2018”. The leader has also taken headlines when saying she is in favour of the publishing of the details of the controversial report of Deloitte, that ended with the intervention of Banco Popular and their later sell to Santander.

The highest risers in the Ibex have been Inmobiliaria Colonial (+2.04%), Enagás (+1.86%) and Abertis (+1.35%). One of the companies that has released an a purchase offer about Abertis, ACS (+0.09%) has been important today because the sovereign fund of Norway, Norges Bank, has raised its participation in capital to 3%.

In the blue chips, the behaviour is mixed. Repsol has gone up 0-17% and Iberdrola a 0.12%. BBVA will be presenting their results tomorrow and has gone up a 0.07%. The biggest burdens for the Ibex has been the Inditex (0.62%) and Telefónica (-1.09%), although the lowest figures have been Indra (-1.33%), DIA (-2.013%) and Acerinox (-2.67%).

TRUMP AND THE FEDERAL RESERVE

On the other hand, Donald Trump is news this Wednesday because he has spoken about the Union of state in which he has also highlighted his America First message and has pointed out their economic achievements. The US president is once again on the sights of Russia and China and has repeated his protectionist message. “United States has finally swung round after decades of unfair trading agreements”, he has pointed out. Also, Trump has insisted on the Mexican wall, and he has had some words for the puerto rican citizens, reassuring them that he is “with them”.

The other appointment of the day will be with the close of the European Markets. This Wednesday the conclusions of the latest Federal Reserve meeting have been made known. There are no updates expected but it is sure that Yellen will leave the door open for Jerome Powell so he will carry out the first increase in rates this year in the March 20 and 21 meeting. In this sense, it is predicted that the statement this Wednesday will highlight the economic growth and will point towards this increase in the price of money which the Fed has expected for 2018.

As for other events in the day, the Spanish IPC dallas a 0.6 points due to the fall of the price of electricity. In the EuroZone the IPC is placed in a 1.3% a decimal under the reading of last month and the least increase of the prices in the EuroZone since July 2017. On the other hand the unemployment rate in the EuroZone in December was at a 8.7% in line with what was expected, the same figure as November.

TECHNICAL ANALYSIS OF THE IBEX 35

“The session this Wednesday where we have gone up almost half a point with Santander rising over 1% has shown that the Ibex is still weak. It doesn’t seem to have it in it to go over the 16,000 resistance. Furthermore we don’t dismiss the option that it will look for the 10,300 -10,315 support point that it reached in January 5”, states José María Rodríguez, technical analyst in Bolsamania.

“And lets trust that the corrective phase stops there and doesn’t go any further. Without a doubt Telefónica has been one of the titles that has contributed the most to the falls side this week, it has lost everything it increased last week. The resistance of 8.40 has been lost again and has left the doors open for the support of the 8.10 euros (2017 lows) to be tested at any moment,” adds the expert.

“In any case, what the price has said is that either we go over the 10,600 points during the week and with space or we will continue to drip down in the next sessions/weeks in a very plausible scenario”, concludes the expert.