Ibex closes with losses close to 1% hampered by commodities

The biggest fallers on Tuesday were all related to oil, which suffered its biggest loss due to oversupply. Brent crude fell 2.5% to $45.70 and West Texas 2.9% to $42.90.

Specifically, Repsol fell 1.92% and Tecnicas Reunidas by 1.9%. In addition, Gamesa was the worst performer after a shareholder meeting in which it approved a dividend of 0.11 euros per share related to profits for 2016. Buy recommendations dropped from 73% in the last year to 44%, according to FactSet. Other stocks which finished lower on Tuesday were ArcelorMittal and Acerinox, after Citi estimated the price of steel would fall for the rest of the year.

The financial sector also affected the Ibex. Banco Sabadell fell 1.68%, Santander 1.5%, Bankinter 1.4%, Bankia 1.20% and Caixabank 0.86%.

The best performer on the day was amadeus with a rise of 1%, followed by Endesa with a gain of 0.9% and Melia Hotels at 0.41%. Only seven stocks were higher on Wednesday, with Iberdrola slightly higher at 0.08%.

DIA will come to the fore this week as it celebrates its third Capital Market Day (presentation in front of institutional investors) with the objective of convincing those with control of more than 20% of the company.

On Tuesday, there were several macro references for investors, although the annual Bank of Spain report from governor Luis Maria Linde showed a defence of Popular, which he said was solvent until 48 hours before the intervention and that the problem was liquidity.

Minister Luis de Guindos spoke about Santander, in which he assured that the Spanish economy “is growing at a speed of 4% annually in the second quarter”.

In Germany the production price index was published, with monthly fall of 0.2% in May, but with an interannual rise of 2.8%. In both cases, one point below expectations. In the eurozone there was a positive balance of 22bn euros in April, although it was less than expected from Reuters analysts.

In the UK, the Bank of England governor Mark Carney said that it is not yet the moment to raise interest rates. US Federal Reserve Dallas president Robert Steven Kaplan will deliver a key speech on Tuesday.

In currency markets the euro fell lightly to $1.1127. On Wall Street, the main indices saw narrow losses after hitting new record highs in the case of the Nasdaq 100 on Monday.

José María Rodríguez, technical analyst at Bolsamanía, said that “the Ibex 35 continues to move laterally, inside a movement which is appearing to be stretched, including recent losses and low growth, triangulating. In fact, it can be said that whatever happens inside the range of prices between 10,600 (support) and 11,050 (resistance) lacks interest. Only when the price breaks either way will we have more clues as to how it will perform.”