The Ibex places itself on the edge of the 9,600 points before its date with Draghi

In the Ibex, the highest risers have been Grifols (+3.28%), Aena (+2.39%) and IAG (+2.23%) followed by Mediaset España (+2.02%). The televisión company has received a buy recommendation from Alpha Value experts that have praised their ability to keep a profitable business and reduce costs. Another “fit” value is Cellnex that has risen 2%.

Other rising values of the day have been Acerinox (+1.8%) and Viscofan (+1.7%). Among the big listers, Santander (+0.2%) and Gas Natural (+0.1%) have been the only risers. On the contrary, Repsol (-1.96%), Inditex (-0.91%), Telefónica (-0.27%), Iberdrola (-0.24%) and BBVA (-0.20%) still can’t manage a take off.

In the main board, the small businesses of renewable energy are still rocketing. Audax has risen a 14% and Solaria 8%. In negative Oryzon Genomics falls 4%.

THE TARIFFS ARE DISLIKED

Trump’s tariffs are disliked by the investors and have been the reason why he has lost his main economic advisor, Gary Cohn, that isn’t on board with them.

Therefore, what is tendency in the market right now is wariness and volatility which makes predicting the end of the day complicated. Investors are on the lookout of the movements of the President of the United States and these could be unpredictable. We will have to see if he confirms a trade war but it looks like Donald Trump has no intention of backing down and that is worrying.

“Although raising the tariffs on steel imports will be expensive, it could be smart politics since free commerce has become wildly unpopular among the republican voters. The immediate and direct effect of the steel tariffs announced will be small and will limit mainly the sectors that are immediately affected”, the experts at Barclays have said this morning. The worst scenario generated by this measure will be the one that involves a trade war, “it’s not our base scenario but it’s a possibility worth watching”, point out the analysts.

On the other side, on Wednesday the spotlight remains on Italian politics and the behaviour of the FtseMIB, that on Tuesday rose 1.75% while the country is submerged in a complicated political situation. The index falls 0.4% now. The formation of a government there will have to be with a radical force involved ‘Liga Norte’ or ‘Movimiento 5 Estrellas’, and that convinces no one. There are those who speak of new elections after the summer.

As for the agenda for today, the EuroZone GDP of the fourth quarter was reported at 2.3% in 2017 thanks to trade. In the US the ADP employment report is published. This comes right before the Friday employment report that will be published on the other side of the Atlantic. Also the investors will continue to prepare in the face of the ECB meeting this Thursday, the most important date of the week.

In Spain the new economy secretary has been elected, Román Escolano will take over from Luis de Guindos once he abandons the post and sets hisway to the ECB.

TECHNICAL ANALYSIS OF THE IBEX

“The only thing we can hold on to in the short term to bounce back in the Ibex is that we have two of the big European stocks (DAX and Euro Stoxx 50) rebounding from their supports. This movement is more evident in the case of the index that is the “European motor”. On Monday it was closing its 11,900 support dramatically but closed far away from session lows at 12,160 points”, explains José María Rodríguez, analyst of Bolsamanía.

“This means that the key support has been maintained and the doors are open for a new rebound that will go after the September highs at 12,600 points. This could be useful to raise our index once again to the resistance of 9,900”, adds the expert.

“In any case, we still haven’t confirmed anything, the main strength of our index is that we can close the bearish gap of last Friday’s session in the 9,740 points. In the meantime more of the same: shy rebounds in a clearly corrective phase of which we still don’t have a return figure”, concludes Rodríguez.