The Ibex seems incapable of climbing over the 9,900

The president of the Fed, Jerome Powell will continue to raise the rates

  • Técnicas Reunidas, Acciona abd Indra have led the rises in the index
  • On the other hand Telefónica and Inditex have burdened the index once again
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Bolsamanía
Bolsamania | 27 feb, 2018 09:57 - Actualizado: 18:03
bolsa_de_madrid_ibex_35_parque

The Ibex 35 is incapable this Tuesday of going over the 9,900 points and falls a 0.02% down to 9,900.20 points. The Spanish index has managed to rise slightly to 9,937 but hasn’t found any catalysts to break on the rise that technical resistance on 9,900.

IBEX 35
11.435,700
  • -0,28%-31,60
  • Max: 11.474,90
  • Min: 11.399,10
  • Volume: -
  • MM 200 : 11.289,95
17:35 23/12/24

The main reference today has come from the US. There the new president of the Fed, Jerome Powell has confirmed that the central bank will continue to normalize its monetary policy. So to speak, it will raise the rates three times (the first in March) and it will reduce its balance.

His aim is to “find balance to avoid economic overheating and take inflation to 2%”. Powell is optimistic with growth predictions for the US but at the same time he trusts inflation will reach 2% in 12 months.

In this context, hardening the monetary policy to avoid financial unbalance and avoid reheating the economy will be his primary mission. Wall Street lists moderate falls after his comments and after listing two sessions of strong rises.

BUSINESS NEWS

In Spanish business news, many references this session. Técnicas Reunidas has risen a 3.99% and has been the highest riser of the Ibex after earning 64m euros in 2017, a 54.3% less. This fall of profit has already been taken off the market.

On the other hand Acciona has presented its results before the opening of the market. The company earned 220m euros in 2017 which means a 37.5% less than last year (352m). It has also announced the sale of its Acciona Termosolar division for 1,093m euros. Other rising values of the day have been Indra (+1.89%) and Mediaset España (1.3%). On the other hand Colonial (-2.49%) and DIA (-1.59%) have led the falls.

The spotlight also goes to Bankia (-0.32%) that has given the key points of its Strategic Plan for 2020 today. The entity has already said they expect to pay 2.5bn euros among its shareholders in the next three years and it predicts a profit of over 1.3bn euros in 2020.

Among the big firms, the behaviour is split. Santander rises 0.8% while BBVA lists flat and Repsol falls a 0.2% followed by Iberdrola (-0.3%) and Inditex (-0.9%) and Telefónica (-1.1%). These last two have burdened the Ibex once more to 27.50 euros, after the reduction of the estimations done by the company on Friday when it fell a 7%.

In macro, in Spain the February the ICP has been made known. This index grew 0.5 points during the month placing itself at 1.1% in the interannual rate, according to the advance the INE published on Tuesday. The prices rose 0.1% from January to February 2018.

TECHNICAL ANALYSIS

José María Rodríguez, technical analyst of Bolsamanía says that if the Ibex were to go over the 9,900 points “we would find the next resistance in the 9,988 points (last decreasing high) and over that the decreasing gap of 10,064 points and over that is the 10,210 points”.

“Meaning that even if we go up 300 points we are at the same spot. Little would have changed. At least if the decreasing gap of 10,210 points were to close we can start to think that something is changing for good in our index”, concludes the expert.

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