Ibex flirts with 10,000 ahead of Fed decision and Dutch elections

Bankia (+3.22%) led the gains in the Spanish index and hit prices not seen since 2015 after receiving the backing of the FROB for a merger with BMN. The announcement of the operation spread to the rest of the banking sector. Popular gained 2.09% after plans were announced in the US to beef up its capital. Caixabank rose 2.36%, Banco Santander by 1.36%, BBVA by 0.66% and Liberbank by 3.36%.

Other big stocks like Repsol (+1.46%) gained after the oil firm benefited from the rising price of the commodity. Telefonica gained 0.79% and continued its impressive performance in 2017.

Inditex rose slightly after seeing a 10% gain its profits for 2016. On the negative side, there were bad days for Red Eléctrica (-0.81%), Endesa (-0.42%), Meliá Hotels (-0.4%), Gamesa (-0.3%), Iberdrola (-0.19%) and Indra (-0.04%).

Despite European stocks moving cautiously ahead of the Dutch elections, the imminent decision from the Federal Reserve will no doubt spur investors into action in the coming days.

These two events will become known while markets are closed, and will be priced in on Thursday. The poll in Holland will see results early on Thursday morning, with the rise of right wing Geert Wilders and his Freedom Party the main talking point.

Regarding the Fed, the market is expecting a rise in interest rates, the first of 2017. It appears that the decision has already been priced in, but CNBC presenter Jim Cramer warned that, while such a rise will be well received by banks, there are many other sectors which will suffer.. The decision will be accompanied by the words of chair Janet Yellen.

TECHNICAL ANALYSIS

“In Wednesday’s session we did what we failed to do on Tuesday. Technically there are few changes, but what we must say is that the graphic will keep giving the same answers between 10,000 and 9,600. The highs and lows remain in that range, and the actions of the last few days remain simple adjustments, “ said Bolsamanía technical analyst José María Rodríguez.

“On the immediate resistance side we can see at 10,090 points, while 10,450 represents the higher part of that scale. The main stocks of the Ibex keep showing a higher movement, and for the moment no signs of any major move downwards.”