The Ibex doesn’t manage to reach the 10,600 points despite the boost from the banks

El Ibex has been supported this Thursday by the good behaviour of the banks (with great weight in the Ibex) following the rises of Bankinter. This entity has been the highest riser today (+5.79%) after starting the results season in Spain announcing record accounts: The entity that Maria Dolores Dancausa leeds earned 495 million euros in 2017, a 1% over the net earnings of 2016.

FactSet expects the Spanish banks will list an accumulated 14.7bn euros like 2016.

So the earnings this Thursday have been led by the bank. After Bankinter came CaixaBank (+2.62%), Banco Santander (1.32%), Banco Sabadell (+1.35%), BBVA (+1.315%) and Bankia (+1.22).

Also the rise in value of Aena (+0.435) that hasn’t improved its opa about Axiare (the deadline was this midnight) and it also hasn’t found a rival in the process.

On the other hand, Telefónica has been the off note since it has started off with rises but has swung down with a (-0.32%) like another blue chip of the Ibex, Repson that has gone down a 0.38%. Inditex has rose a little (+0.035%).

SIEMENS GAMESA LEADS THE FALLS

The red lantern this session has been Siemens Gamesa, dropping more than 3.5% followed by IAG (-2.28) and Cellnex Telecom (-2.35). Regarding this last company, the manager Threadneedle Asset Management has reduced its participation down to 4.9% of the capital.

Also the media conglomerate Mediaset has fallen (0.26%) after the Markets and Competences National Commission has fined them again for going over the advertising limits.

DRAGHI DOESN’T STOP THE EURO

The Ibex 35 has been the only one in the Old Continent to rise. In fact, the main European stocks have gone red this Thursday. The ECB has had the central stage today in its monetary policies meeting.

The organism has maintained the interest rates in 0% just as expected. And it hasn’t changed the sale of assets, that will still reach the 30bn a month. Also during its intervention in the media, the president of the organism, Mario Draghi, hasn’t waited long to allude to the euro. Specifically it has recognised that “the recent volatility in the change rates of the euro supposes a box of uncertainties that will be monitored by the implications it can have in the price stability”.

Nevertheless, despite Draghi’s efforts, the markets are keeping the idea that the ECB is more convinced that the inflation will rise and it will have to dismantle the incentives and the reading is boosting the euro even further. So at the Spanish market close, the only coin to go over 1.25 dollars, a change it hasn’t managed since 2014.

DAVOS AND MACROECONOMICS

The summit in Davos continues this Thursday after the intervention of Philip VI this Wednesday trying to convince the international investors to take their capital to Spain. It has been the turn from the Spanish delegation of the president of BBVA Francisco González who has assured “there is no way Cataluña will be independent”.

Theresa May, the British PM, speaks today. The speech is expected to be about the challenges of artificial intelligence. The president of the US, Donald Trump asrrived to Davos this Thursday. It’s predicted that he will meet with Benjamin Netanyahu, Israel’s PM. Trump will be the guest of honour in the party organized by the World Fund and it will later organize a dinner for a selected group of delegate European advisers with big US investments.

As for the macro agenda this session, the unemployment rate in Spain has been published today and it has gone down to 16.55% in 2017 with 471,000 less unemployed people. As for the German IFO, the business climate this January is at 117.6 over the 117.1 estimated.

TECHNICAL ANALYSIS

José María Rodríguez, technical analyst in Bolsamania admits that the Ibex is having “a bad run with the timing of choosing to attack the resistances”. “Waiting for so long to test the 10,600 points and just when we decide to do so the euro shoots, going only over in two occasions”, he regrets.

“We already know by personal experience that when we have such sudden movements in the currencies and also with the euro going against the majors, the variable rent of the Old continent resents. It suffers”, he adds. Rodríguez accepts that “after all, we aren’t doing so bad, because from the highs of Tuesday the European stocks have gone down 2% and we have only gone down 0.5%”.

“The thing is we still see the Ibex with desires of rising but the set of the new strength of the currency is slowing us down. In any case we can’t lose hope and we will see what the weekly close tells us tomorrow. We know that the price we need is over the 10,600 with space and strength”, concludes the analyst.