Blue chips sink Ibex below 10,800 points

Index falls 0.98%n to 10,775 points

  • Inditex reports 654 million euro profits, 1.8% lower
  • Banks close significantly lower, as does Telefonica
  • Investors wait on Fed decision later on Wednesday
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Marta Gracia
Bolsamania | 14 jun, 2017 18:17 - Actualizado: 18:17
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The Ibex 35 slumped lower once again on Wednesday, falling 0.98% to 10,775 points. The blue chip stocks of the index forced the loss of 10,800 points. The Ibex opened higher this morning before going back on itself to finish in the red. Investors are waiting on the more than likely raise in interest rates from the US Federal Reserve, which will be announced at 8pm Spanish time.

IBEX 35
11.553,900
  • -0,30%-34,50
  • Max: 11.720,70
  • Min: 11.553,70
  • Volume: -
  • MM 200 : 11.100,36
16:17 20/11/24

Banco Santander was the main culprit of Wednesday’s loss. Ana Botin’s bank fell 2.13% to 5.93 euros, making it the third worst performer on the day. On Wednesday it announced that it will look for a solution for private investors relating to last week’s capital raise.

The wooden spoon of the day went to Acerinox, which fell 2.45% to 11.76 euros. However, significant losses were recorded by the heavyweights of the market. Alongside Santander, BBVA fell 1.44%, Telefonica dropped 0.8%. Inditex also suffered during the session. The clotjing company reported earnings of 654 million euros in the first quarter, 1.8% lower.

None of the banks closed higher. Caixabank fell 2.17%. Bankia lost 1.5%, Bankinter was 1.17% lower, while Banco Sabadell stumbled 0.63%. Repsol also fell, influenced by oil prices, by 1.64%.

Iberdrola was the biggest stock which recorded gains on Wednesday. The company gained 0.57% to 7 euros. However, Aena led the advances on 1.69%, breaking its losing streak. Ferrovial rose 1.64%.

Cellnex and DIA both hit new intraday record and annaul highs. Finally, the telecoms company rose 0.63% while the supermarket chain rose 1%.

OTHER MARKETS

European markets showed a mixed bag. The CAC 40 closed with a loss of 0.35% while the FTSE 100 fell by the same amount. The DAX 30 closed 0.32% higher.

Wall Street is also showing mixed signals. The Dow Jones hit a new record high during the day, while investors remain alert to today’s Federal Reserve meeting. The likelihood is that the body will raise interest rates.

In commodities, oil tanked 3% after inventory data. Oil reserves fell 1.661 million barrels per week, a figure which is lower than what was predicted by Reuters analysts. Brent crude fell 3.45% to $47, while West Texas was 3.68% lower at $44.74.

TECHNICAL ANALYSIS

José María Rodríguez, technical analyst at Bolsamanía, pointed out that once again the Ibex 35 failed in its attempt to attack the upward part of its lateral movement of recent weeks. “While it ended the day in the support zone, in the 10,760-10,800 range, I fear that we are looking towards the 10,560 point as we attempt to find the “C” that we have recently talked about.”

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