The Ibex falls a 1.8% down to 10,300 points and loses a 3.6% in the week

The business results haven’t had a good welcome this Friday. In first place, CaixaBank has lost a 2.98% after presenting its results. The bank listed an attributable profit of 1.6bn last year (+60.9 in comparison to 2016), which means it’s the highest result in the history of the entity. The results of CaixaBank in Spain has reached 1.5bn a 44.1% more than 2016. The consensus of the market awaited a profit of 1.8bn euros according to FactSet.

On the other hand, Banco Sabadell has also listed falls of 3.4%. The entity has closed 2017 with a net attributable profit of 801.5m euros, which means a 12.8% annual growth and a 33.9% exTSB. The bank has explained the results are consequence of a “strong increase of the income of the banking business” (interest margin and net commissions), that have gone up a 5.5% in interannual and comparable terms. The profit is in line with the expected by the consensus which predicted a 800m increase according to FactSet.

Aside from CaixaBank and Sabadell, the falls have been present in almost all the Ibex. ArcelorMittal (-3.89%), DIA (-3.57%) and IAG (-3.35) have been the lowest figures. Amongst the blue chips, Endesa has fallen a 2.56%, Inditex a 2.26%, Telefónica a 1.77%, Repsol a 1.7%, Iberdrola a 1.6%, Santander a 1.46% and BBVA a 1.36%.

In the main board, there have been rises of 5% for Saeta Yield, participated by ACS and specialized in renewable energies. The Brookfield fund is close to an agreement to buy the company

FALLS IN EUROPE

The rest of the European stocks aren’t starting February on the right foot either. The German DAX 30 has lost a 1.6%. A fall marked by the results of Deutsche Bank (-5%). The biggest German bank registered losses of 497 million euros in 2017, burdened by the negative impact in its accounts due to the tax reform in the US. The German index prolongs its correction in the short term, after it fell 1.5% this Thursday.

The French CAC 40 has lost a 1.5% and the FTSE 100 a 0.6%, after listing a fall of 0.5% in the past session. “The falls in the American debt and the strength of the euro sill pressure the European stocks”, say the experts in Banco Sabadell.

BONDS MARKETS AND WALL STREET

The experts at Link Análisis say “they will be on the lookout of the bonds market. In this sense, if the profitability of the bonds keeps rising tensions are going to be generated in the variable rent market as we have seen”, the point out in their daily report.

In this sense, the profitability of the 10 year American bond has risen a 2.8% and has marked highs of 2014, which is making the market nervous. Wall Street lists falls of 1% after the unemployment report for January has shown the biggest interannual rise in salaries since 2009. The inflation pressures can force the Fed to harden its monetary policy quicker than expected, which is one of the main fears of the market.

In Spain the unemployment rates for January have been made known. The results revealed by the Employment and Social Security Ministry have placed the unemployment rate this month at 3,476,528 a rise of 63,747 people in comparison with December. In interannual terms, unemployment falls at a 7.54% (24,161 people) regarding January 2017, maintaining its lowest level in the past 8 years.

TECHNICAL ANALYSIS OF THE IBEX 35

“We couldn’t have closed the week any worse in our index, clearly distanced from the resistance zone that we were going to attack this week: the hard 10,600 points. Remember that as we said last week, or we jump high over these November highs or we can’t trust the Ibex”, explains José María Rodrígeuz, technical analyst in Bolsamanía.

“In the end we haven’t just not broken the resistance but we have also swung downwards violently and what is worse we will test the the important area of support of the 9,900 points”, adds the expert.

“After this swing downwards there are a lot of heavy firms that have worsened the technical look that they presented a few days ago, especially Telefónica. This has marked a new falling low and has gone through the support of the 2017 lows, in 8.10 euros. And in the meantime we have the European indexes trying to test the strength of the support that it presents in the lows of the first session of 2018. Going through them would be a weakness sign for the European stocks”, concludes the expert.