Ibex 35 takes on 10,700 points and hits five-week high
Spanish index rises 0.55% to 10,734.70 points
- Breaching this resistance opens the door to 11,000 points
- Telefonica and Inditex the best performers on Tuesday
The Ibex 35 rose 0.55% on Tuesday and finished above 10,700 points. The index hit a five-week high at 10,734.70 points and now looks towards the psychological level of 11,000 points. Telefonica (+1.23%) and Inditex (+1.18%) led the way in the Spanish stock market, as the telecoms firm went above 10 euros.
IBEX 35
11.435,700
-
-0,28%-31,60
- Max: 11.474,90
- Min: 11.399,10
- Volume: -
- MM 200 : 11.289,95
The highest riser however was Enagas, which confirmed its interest in buying a Greek gas network, followed by Acerinox (+1.54%) and Telefonica.
On the other side of the table, Colonial (-0.8%) and Tecnicas Reunidas (-0.8%) led the losses. Analysts at Carax AlphaValue lowered their recommendation to ‘reduce’ from ‘add’ after its performance in recent months.
A good day also for BBVA, which hit annual highs of 7.89 euros after a raise in its valuation by Bankinter to 8.75 euros. Santander gained 0.6% after receiving authorisation from the European Commission for its acquisition of Banco Popular.
Other European markets saw moderate gains on Tuesday. The FTSE 100 gained 0.2%, while the CAC 40 also rose 0.2%, with the DAX 30 in Germany 0.3% higher.
Wall Street was slightly lower at the open, with the Dow Jones refusing to correct and hitting a new record, above 22,100 points. If it finishes higher on Tuesday, the index would make it a 36th all-time closing record of the year.
Although the calendar is quite empty for investors, there are still relevant details in order to make decisions. In Spain, house trading increased 19.3% in June in respect to the same period last year, to its highest level since February 2011. The National Statistics Office also revealed on Tuesday the number of transported vehicles reached 418,772 people, an increase of 4% since May.
In Europe, the commercial balance of Germany was released today. German exports are now at 104.9bn euros for June, according to adjusted data from the German office of national statistics., representing a 2.8% decrease in comparison with the previous month.
Technically the Ibex’s breaching of 10,700 points is good news, as it breaks the narrow movements of recent weeks. The index would be fulfilling a small figure and going in search of the 11,000 points. The fact that BBVA has gone above its previous annual high and that Santander has closed above its resistance of 5.80 euros reinforces the good feeling in the short term.
