The Ibex (-0.78%) on the verge of 9,000 as China and US trade tensions escalate

Donald Trump has revived the trade war and the world stock markets have fallen again with force. The president of the US has assured this Sunday that Washington is "right where it wants to be" with China and has anticipated that they will get "billions of dollars" through tariffs.

For his part, in an interview with Fox News on Sunday, White House economic adviser Larry Kudlow said that President Trump and Chinese President Xi Jinping will probably meet at the next G-20 summit in Japan.

Kudlow said the chances of such a meeting "were pretty good", but added that "there are no concrete and definitive plans" for when negotiators from both sides meet again.

BUSINESS NEWS

In business today, investors have fallen defensively before the increase of uncertainty. Within the Ibex, Red Eléctrica (+ 2.25%) led the advances, followed by Naturgy (+ 0.96%), Iberdrola (+ 0.88%), IAG (+ 0.55%) and Endesa (+ 0.54%).

In negative, the majority of values. The most bearish was the paper company Ence (-7.52%), which continues to collapse due to the bad forecasts for the continuity of its plant in Pontevedra. In addition, Indra (-5.75%) and ArcelorMittal (-4.96%) have also sunk, followed by CIE Automotive (-4.06%) and Siemens Gamesa (-4.01%), after a reduction of Deutsche Bank estimates.

In the chapter on corporate earnings, Acerinox (-1.67%) reported a 44% drop in net profit for the first quarter, to 33m euros. The steelmakers are not having a good time, as the ArcelorMittal figures showed last week. The increase in imports in Europe, which has reduced prices, and the increase in the prices of raw materials, without forgetting the negative sentiment generated by the trade war, is doing them a lot of damage.

In other markets, Brent oil rose 0.7% to $ 71.10. In addition, the euro increased in value 0.1% to $ 1.1231. For its part, Spain's risk premium slightly rises to 104 points, while the yield on the Spanish 10-year bond remains at 0.98%.

TECHNICAL ANALYSIS OF THE IBEX 35

"Definitely, the Ibex loses the support of the 9,100 points, coinciding with a horizontal support as well as with the adjustment / recession level of 38.2% of the whole rise since the December minimums, and this leaves the door open to the more important support at 8,950 points (50% adjustment / setback) and below the 8,780-8,800 points (61.8%) ", explains José María Rodríguez, Bolsamanía expert .

"Although experience has shown us that prices tend to find a floor halfway between the level of adjustment between 50% and 61.8%, the truth is that despite the daily oversold (not weekly) is extreme, prices cannot rebound, but do not doubt that they will do so, because nothing falls without its corresponding rebound (or reaction phase), "adds this expert.

"Just as in an uptrend prices have to fall to continue rising, in a downward trend the opposite occurs, we need significant rebounds to continue correcting, yet today we are still shuffling (there are no reasons not to do so) we are in the phase of adjustment / proportional correction of the last rise, which began at the end of December, meaning a drop to 8,800 points, although violent, would fit within the normal parameters " , concludes Rodríguez.