Banks take control to bring Ibex back to 10,600 points

Other stock such as ArcelorMittal (+3.57%), Repsol (+2.72%) and Telefónica (+2.11%) performed well. On the other hand, Aena fell 1.02% and airline IAG dropped 0.66% and were the two worst performing companies.

The two opening days of the week will be marked by the fact that Wall Street does not open on Tuesday, while the volume of trading is likely to subside over the summer months.

In company news, the CNMV admitted the application for an offer from Atlantia forn Abertis, which fell 0.34% to 16.16 euros.

Berenberg analysts raised the target price of Applus Services to 13.50 euros per share from 11.80. Prisa was the best performer in the general stock exchange (+13%), and was followed by Montebalito (+10%).

At an international level, a case involving Barclays and four ex-directors accused of fraud during business dealings in Qatar began on Monday. It’s the first time there have been charges brought against the bank relating to the crisis.

In Spain, in economic news of the day the government revised the previous growth forecasts for this year and the next to 3% and 2.6% respectively.. It reflects a new macroeconomic model which gives support to state spending for 2018. The recovery of the construction sector is one of the keys for explaining the improved forecasts.

In relation to data, manufacturers PMI in Europe for June came out worse than expected in Spain (54.7), Italy (55.2) and France (54.8). In Germany and the eurozone it was better than forecast: 59.6 and 57.4 respectively. In addition, the eurozone employment rate was at 9.3%, above the 9.2% expected.

In the US, Wall Street was showing mixed signs with the Nasdaq once again the worst performing index. Donald Trump has generated another controversy on Twitter after tweeting a video of himself wrestling with a man with a CNN logo on his head.

Oil climbed 1.6% higher (WTI) to $46.80, while Brent regained 1.3% to $49.40. In forex, the euro fell 0.5% to $1.1365, while the prime risk in Spain fell close to 3% to 104 points.

TECHNICAL ANALYSIS

“Monday’s bounce has very little implications, as of now noone can deny that for the moment it’s a simple rebound inside a lower movement. As we like to remind however, ‘we know how things start but not how they finish’. What that means is that there is a possibility of something more than a simple rebound,” Bolsamanía technical analyst José María Rodríguez said.

“We can now head towards filling the upward gap (which has yet to be closed). What’s more, if there is an ideal moment for trading it is now. The end of the support we made reference to in the last two months is working and in case this gap isn’t filled in the worst cases we would be looking at more lateral movements.”