Banks carry Ibex towards 10,600 ahead of results barrage
Index rises 0.74% to 10,523 points
- Six banks in the Ibex will present results this week
- Euro hits two-year high above $1.17
- Telefonica names new CEO as Ángel Vilá
Banks were the main talking point on Monday after they rose 2% on average. The financial sector brought the Ibex towards 10,600 points in the week of second quarter results. The Spanish index rose 0.74% to 10,523 points, while the euro hit two-year highs against the dollar.
The banking sector will publish its results on Thursday and Friday, days in which Telefonica will also report alongside the majority of firms in the market. Banco Sabadell rose 3.69% to 1.9 euros. It was followed by ArcelorMittal on 3,24% to 22.47 euros. The third stock on the podium was Bankia with a gain of 2.8% to 4.4 euros.
Bankinter was close behind too. It was 2.22% higher at 8.3 euros. Banco Santander meanwhile also rose 1.84%. BBVA registered a gain of 2.02%, while Caixabank advanced 2.07%.
Other blue chips also performed well. Telefonica was 0.27% higher at 9.33 euros. Ángel Vilá was named as the company’s new CEO today.
On the bottom side, Ferrovial picked up the wooden spoon among the top companies after falling 2.08% to 18.4 euros. Grifols was the second worst performer after a loss of 1.45%. The company raised its stake in Kiro Grifols to 90% after buying 40% of its capital for 12.8m. Inditex had a bad day after falling 0.3%.
With respect to company results, Applus earned 7.2% less between January and June, with a profit of 16.3m euros. The firm fell 0.36%.
OTHER MARKETS
Green spread to other European markets on Monday. The CAC 40 rose 0.76%, the FTSE gained 0.84%, while the DAX 30 was 0.5% higher.
In the German economy the IFO survey hit a new record of 116 points from 115.2 in June, its best reading since the reunification of the country.
Wall Street was showing mixed signals at the halfway point. The Nasdaq was hampered by the fall of Alphabet, which fell 3% after a 27% fall in its profits in the second quarter.
The euro is continuing to grab the attention of investors. Its upward trajectory continued on Tuesday to $1.17 for the first time since August 2015.
In fact, the euro touched a high of $1.1712, equalling its biggest change since 24 August 2015.
In commodities, oil was seen 3% higher after the OPEC meeting saw a supervision of the agreement to cut production in Saint Petersburg.
Brent was 2.65% higher at $49.93, while West Texas rose 3.06% to $47.7.
TECHNICAL ANALYSIS
Bolsamanía technical analyst Cesar Nuez points out the Ibex 35 has deflated and closed with gains of 0.74% after we saw as high as 1.7%.
“Despite ending the day higher we must keep in mind the correction which has been moving in the last three months. We continue to think that the loss of support at 10,400 points will bring us to a lower level of around 10,200 points.”
