The Ibex bounces 1% although it ends the month of October with a fall of 5.3%

The index started the month from 9,389.20 integers, and just a few sessions ago, on the 24th, it marked a new annual minimum at 8,677.40 points. Therefore, the rebound of the last sessions, although welcome for investors, is still far from changing the bearish trend of the Spanish selective. It is the worst month for the Ibex since February and most bearish month of October since 2008. The annual loss for the index is 11.4%. So, for now, there are few reasons for optimism.

RESULTS OF THE BLUE CHIPS

In the corporate scenario, Repsol has announced record results, presenting a net profit of 2,171 million euros until September. In addition, it has confirmed its goal of increasing its dividend by 8% each year, which investors liked. The oil company has led the purchases in the Ibex, with gains of 4.35%, ahead of IAG (+ 3.84%) and CIE Automotive (+ 3.72%).

For its part, Santander has earned up to September 5,742 million euros, 13% more. The Cantabrian entity has risen 2.11% and moves away from the support of 4 euros, supported by the good obtained in Brazil.

Another multinational that has relied on the country to get good figures Carioca has been Telefonica, which has won in the same period by 11.6%, to 2,721 million euros. The company, in addition to reaffirming its objectives and dividends for the year, has improved its revenue target for 2018. Its shares have risen by 2.8%.

The evolution of these three blue chips has marked the march of the Ibex in this positive session across the Old Continent after the increases seen in Wall Street and Asia. In negative, few values: DIA has continued with its calvary after yielding 3.45%, followed by BBVA (-1.75%), another very weak value in recent weeks, Red Eléctrica (-0.92%), Grifols (-0.9%) and Iberdrola (-0.86%).

THE CPI COMPILES THE BCE

As for other aspects of the calendar of this Wednesday, the most relevant data of the day has been the CPI of the Euro Zone, which has risen to 2.2% year on year in October, driven by the increase in the prices of the energy and by the increase in core inflation.

This figure is particularly interesting given that the growth of the Euro Zone slowed yesterday to its lowest level in four years, which makes it even more difficult if the process of monetary normalization that the European Central Bank plans to start in the coming months.

Moreover, investors are still pending on Wednesday for the statements of Donald Trump, who is radicalizing his speech as they approach the midterm elections in the US, scheduled for November 6. They are also waiting for Italy, after the European Commission sent a new letter to the country's executive on Tuesday warning it that the high Italian debt is a vulnerability for "the entire Euro Zone."

In the currency market, the euro depreciated 0.29% to 1.1314 dollars, very close to its minimum of the last 52 weeks, marked on August 15 at $ 1.1302. In terms of raw materials, Brent oil falls slightly 0.32% to $ 75.67, after the annual maximum marked on October 3 at $ 86.74. Finally, Spain's risk premium is relaxed by 3%, up to 118 points, although it remains close to its annual maximum of 134 points registered at the end of May.

TECHNICAL ANALYSIS OF THE IBEX 35

"We had not seen the Ibex rise with joy for some time, relying on three of its main 'blue chips', such as Repsol, Santander and Telefonica, all of them with an average increase of 3%, nor is Inditex doing anything wrong. it discounted dividends and that in the last two weeks accumulates a rise of 7%, "says José María Rodríguez, analyst at Bolsamanía.

"The gap that reopens between BBVA and Santander is striking." While the Cantabrian entity bounces 7% from the lows of last week, BBVA marks a new annual minimum below 4.9 euros on Wednesday. And what is worse, it does not seem to have significant support until the area of ​​4.6 euros, which is where the medium and long-term bullish direction passes, "adds Rodríguez.

"On the other hand," says this expert, "what leaves us with a bittersweet taste is the wide gap that we have risen today, why, because experience has shown us on numerous occasions These are to be filled, at least partially, in the short term, so that what has been raised today can be corrected in the coming days. "

"Thus, these gaps are found in the 4.10 euros of Santander and 7.04 euros of Telefónica, or what is the same, we do not rule out that the prices correct in the very short term with the intention of checking the strength of the new levels of support before trying to set course for the important resistance of the 9,163 points ", concludes Rodríguez.