The Ibex closes February with 5.85% falls and under the 9,900 points

Investors have faced on Wednesday a true results avalanche in Spain. As usual, leaving everything until the last minute, numerous companies from the Ibex and the main board have published their results today. We should highlight that when there are so many figures in such a short space of time it’s more complicated to analyse all of them.

The highest riser of the Ibex has been Melía Hotels (+7.82%) after publishing results that have pleasantly surprised investors.

The Repsol accounts have also been favourable (+3.48%) and it has reduced its debt over what was expected, it has pointed out that it will use the 2.8bn euros of the sale of 20% of Gas Natural Fenosa on organic growth. Other rising values of the Ibex have been Merlin Properties (+3.61%) and the airline group IAG (+1.55%).

The results that haven’t been pleasing in the market are the ones from the pharmatheutical group Grifols (-4.93%) that has disappointed investors. Bankia (-2.82%) hasn’t had a good day either after presenting on Tuesday a Strategic Plan that hasn’t amused analysts. Other low value has been Viscofan (-2.06%) followed by Endesa (-1.87%) whose figures haven’t been received with a consensus.

Negative behaviour for the blue chips: : Iberdrola (-1.49%), Inditex (-1.15%), Santander (-1.1%), BBVA (-0.86%) and Telefónica (-0.34%) that has communicated the emission of debt for 2bn dollars in 20 to 30 years.

POWELL’S MESSAGE

“The Fed will continue to look for this balance to stop the economy’s reheating and take inflation to 2%”, said Powell in his address to Congress. This Thursday he will speak in the US Senate.

The experts at Link Securities explain in their daily report that the markets saw yesterday that it’s very likely that the Fed “moves” faster than expected, raising the interest rates more than what was predicted by investors. “In fact, the probability that the Fed raises the rates four times a year instead of three is of 25%, double than at the start of the month. It’s because of that that the bonds swung downwards which provoked a strong rebound of their profitability, especially on the short term”, they add.

For now, the central banks are still in charge and the markets move according to what they decide on the monetary policy. This dynamic will continue during the month of March, with the meetings of the Fed and the ECB that will are also very important meetings (from the first we expect a raise in rates and the second we expect them to announce how they’ll withdraw incentives).

As for the macro scenario today, we should pay special attention to the EuroZone’s IPC in February that will be the reference for today’s session and the week. Also in the US fourth quarter GDP will be published.

TECHNICAL ANALYSIS

“Another session where nothing has changed technically, we remain halfway to the supports and to the resistance. Although we are closer to the second. The problem is when we go over the 9,900 resistance and nothing happens”, says Bolsamanía expert José María Rodríguez.

“Although we are still in our corrective phase and we don’t have a swing figure. The important resistance is the one at 10,210 points in the downwards gap at the start of February”, adds the expert.

“There is a falling gap there that hasn’t been filled not even partially. So let's not trick ourselves, the 9,900 points are the most immediate resistance but by little. The 10,210 points are more relevant and. And under that the support of the 9,589 points, February lows”, concludes Rodríguez.