The Ibex loses the 10,600 points waiting on the ECB with a high euro

The Ibex 35 has fought this Thursday to maintain the key level of the 10,600 points it went over yesterday. Nevertheless the index has not managed it today and has closed the session with a fall of 0.44% in the 10,563 points.

This session has been a transition session since the investors are waiting until Thursday when the ECB will meet to make a decision on the types of rates, after the organisation led by Mario Draghi let see in their proceedings a change of heart. It should be mentioned that waiting for this meeting, the euro has set new highs since 2014, managing to go over 1.24 dollars.

Also this Thursday, the results session will start in Spain and Bankinter will be the first to be accountable (before the opening of the Spanish market), this session it has gone down a 0.28%.

FOUR FIGURES IN GREEN

Only four companies have managed to finish the session in green. The highest riser today has been Técnicas Reunidas (0.69%), followed by Iberdrola (+0.33%), Bankia (+0.19%) and Inmobiliaria Colonial (+0.19%).

The big fishes or blue chips of the Ibex haven’t managed to close in green. The petrol company Repsol and Inditex have both closed flat, while BBVA and Banco Santander have fallen a 0.13% and a 0.47% respectively. Telefonica however has ironically boosted the index on Tuesday has lost a 0.59%.

The falls have been led by Siemens Gamesa (-2.43%), followed by Meliá Hotels (-1.70%) and Indra (-1.39%).

Also the fall of Cellnex Telecom (-1.10%) despite Jefferies raising its objective price to 26 euros (it has closed in 22.59 euros) since it considers it a European leader in its sector.

VERTICE 360º AND OTHER STOCKS

In the main board, the audiovisual producer Vértice 360º has also come back with a strong rise to the stock (+8.64%) after almost four years of suspension.

Likewise the main stocks of the Old Continent have also closed in red. Also the stocks of the French group Suez Environment have plummet this Thursday (-16.59%) after sending a profit warning, that will be less given the institutional crisis in Catalonia.

FELIPE VI IN DAVOS

The king Philip the VI has intervened in the World Economics Fund that is taking place in Davos and has pointed out that “Spain is no longer the ill country in Europe but an economic engine”. Also, it has pointed out that the Spanish Constitution “isn’t an ornament”, it is an expression of the will of the Spanish citizens and a pillar in its “democratic coexistence”, reason why it needs respect. In its first speech before a fund that joins the politics elite and the world economy, the head of Spanish state has not been able to stop himself from talking about the recent crisis in Catalonia, and it has referred to it as a “try to damage basic rules” of the Spanish democratic system.

Here in Spain but also in relation with the Catalan independence challenge, the president Mariano Rajoy has ensured in his interview with Onda Cero that if the ex president of the Generalitat Carles Puigdemont comes back to Spanish soil, he will be arrested.

The German chancellor, Angela Merkel, has declared that Europe should not complain when other countries like the US overhaul their tax system and then do their own reforms, as reported by Reuters.

The American delegation, with Donald Trump at the head, will fo to Davos this Wednesday. It is expected for the president to intervene on Friday.

MACROECONOMICS AND POWELL IN THE FED

Following with the US, the past session the US Senate officially confirmed that Jerome Powell was the new president of the Federal Reserve (FED). The mandate of Janet Yellen expires next February 3. “It has gone through what was expected but it has taken a long time for the Senate to approve Powell as the successor of Yellen. We hope that (Powell) tightens on the current monetary policy strategy in the short term, raising the rates three times this year”, point out the experts in Danske Bank.

Finally, regarding the agenda of the day, the PMI indicators preliminaries of January have been published in the service sector and in the manufacturing sector, in Germany and in the Eurozone. In both cases the data of the manufacturing sector has placed itself slightly under the provisions, but the ones of the services sector, more important to the economy have gone over the pronostics.

TECHNICAL ANALYSIS

José María Rodríguez, technical analyst of Bolsamanía has insisted in the “importance of the close of the week to see if we are capable of closing over the 10,600 points”.

“Only over that level with space in the weekly period will be able to trust in that potential of a double bottom with the aim of the 2017 highs in the 11,185 points”, he adds. “To not confirm over that level would not be the end of the world, we at least have a new rising high over the November highs”.

Also the expert considers that “while we have the rising minimums and maximums there’s only one thing to do: rise”.

“As for everything else, it’s the same, the bank is still strong and the Telefonica falls this Wednesday fit in the typical throw back to the new support, before the resistance of 8.40 euros. Because of having more trust in going over the resistances in the Ibex it would be good that our operator would finish closing the week with clarity over the 8.40-8.45 euros” he concludes.