The Ibex boosted by electric sector and hits 2 year highs in 10,100 points

Here in Spain, investors are still aware of everything that has to do with the coronavirus and also the evolution of specific companies, especially those that present results.

Telefónica, after rising 5% in the last two days, has announced changes in the company's executive committee following the departure of Enrique Lloves "for personal reasons", including the creation of the new Strategy and Affairs Department Public, which will be under the responsibility of Eduardo Navarro.

Technically, until Telefónica does not break 7.05 euros, it will not improve its appearance, says José María Rodríguez, an analyst at Bolsamanía.

We can also highlight in this session the cuts in ACS (-4%) after publishing their figures at the close. There was also confirmation that the ACS strategy for 2020 will focus on reducing its exposure to high-risk construction. The CEO of the construction company, Marcelino Fernández Verdes, has recognized that fulfilling this objective will mean that "the margins are lower, but the risks will also be lower"

Finally, Deutsche Telekom has anticipated on Wednesday that its profit growth will be reduced to 3% this year after a strong fourth quarter. The largest mobile phone operator in Europe estimates that its EBITDA will reach 25.5bn euros, below analyst expectations.

Asian stock exchanges have risen this morning following a report that China is considering the possibility of daily cash injections and mergers to rescue its aviation industry, which has been greatly affected by the massive immobilization of aircraft and restrictions of travel due to the coronavirus.

This increases optimism at the idea that the Chinese authorities keep their promise to repair the parts of the economy most affected by the virus. The number of deaths due to this cause has already surpassed 2,000 in China. However, Hubei, the province in the eye of the storm, has reported the least number of new cases since the counting methods were changed last week. This support from China to its airlines comes after the Chinese central bank took action last week.

The macro data will continue in focus after the bad ZEW in Germany yesterday, which highlighted the more than obvious impact of the coronavirus in Europe. Today the most prominent reference are the minutes of the last meeting of the Federal Reserve (Fed). So far the US central bank is following, without acting, the evolution of the coronavirus and its potential impact. Over the next few months we will check if it also choose to make changes in its policy for this reason, as the bank of China is already doing.

On the other side of the Atlantic, there is also talk of the rise of Michael Bloomberg as a Democratic presidential candidate. Bloomberg has announced that he will sell his companies (Bloomberg) if he is elected president of the United States.

In Europe, meanwhile, the focus is on the United Kingdom and the fact that both the country and the EU have tightened their positions in the Brexit negotiations. It should be remembered that today the UK CPI has been published, which has risen more than expected in January.

TECHNICAL ANALYSIS

"The Ibex continues to climb positions without making much noise and is already clearly placed above 10,000 points. The fact is that it is already clearly above the upper part of the bullish channel of recent months and the theory says that when a bullish channel surpasses the rise, the normal thing is that the rises are accelerated and the price covers the width of the channel", explains José María Rodríguez, analyst of Bolsamanía.

"That is, the area of ​​10,500 - 10,600 points would be the next major objective to be achieved with the intermediate resistance permit that we have in the 10,300 points: the maximums of May 2018. Regarding values we can highlight the all time highs of titles such as Enagás, Red Eléctrica, Endesa and Iberdrola, "adds this expert.

"The normal thing is that, sooner rather than later, the 'utilities' sector will take a short break and the banks will take over. Attention also this Thursday to the results of Telefónica before the opening and the resistance it presents in the 6.80 euros, which is where the bearish guideline of the last almost five years passes, "Rodriguez concludes.