Ibex gains more than 1%, leading the European charge and hitting 10,900 points

International terrorism returns to the headlines after Manchester attack with 22 people dead

  • Spanish index the best performer in Europe, pushed on by the blue chips
  • Wall Street shows mixed signals after the arrival of a plethora of economic data
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Nieves Amigo / César Vidal
Bolsamania | 23 may, 2017 18:52
atentadomanchester

The Ibex 35 gained 1.14% to 10,916.30 points, pushed upward by the banking sector and electrical companies and other blue chip stocks. Despite the horrific attack in a music concert in Manchester which left 22 people dead, European markets closed higher.

IBEX 35
11.557,800
  • -0,26%-30,60
  • Max: 11.720,70
  • Min: 11.556,60
  • Volume: -
  • MM 200 : 11.100,36
16:15 20/11/24

The attack came two weeks out from the general election in the UK and after another terrorist attack in London at the end of March. In addition, it shows the threat of terrorism is far from gone and can hit at any moment.

At a business level, the highest stocks were Caixabank (+2.74%), Bankia (+2.33%), Santander (+2.3%), Endesa (+2.26%), Sabadell (+2.16%) and BBVA (+2.06%). Other blue chips such as Repsol (+1.62%), Iberdrola (+1.22%) and Telefónica (+0.74%) also had a good session. The electric firm’s president Ignacio Sanchez-Galan was in the news after receiving 500,000 shares valued at 3.5 million euros.

A special mention for Abertis, which was 0.51% higher at 16.61 euros.

On the losses side, Cellnex fell 1.4% followed by Merlin Properties (-0.8%), Grifols (-0.78%), Popular (-0.57%) and Inditex (-0.45%). Bolsamanía published that the textile company may propose a dividend for its shareholders, charged by founder Amancio Ortega, in its next shareholders meeting in July, according to sources.

Eurozone finance ministers were not able to arrive at an agreement with the IMF for the alleviation of Greek debt. Eurogroup president Jeroen Dijsselbloem, who presided over the meeting on Monday, said the deal is close and they will return to the topic in June’s meeting.

PMI services and manufacturers for Europe were released on Tuesday, mostly above expected. In Germany, business confidence improved in May to 114.6 points from 113 in the previous month.

In the United States, preliminary data from the services sector was better than expected, but the manufacturing and new home sales were lower than expected. Wall Street was slightly higher at the close of European markets.

TECHNICAL ANALYSIS

“Tuesday’s gains leave the Ibex 35 were hard-fought after opening lower. In addition, the price surpassed the lower direction in the short term, putting it close to the psychological barrier of 11,000 points,” said Bolsamania’s technical analyst José María Rodríguez.

“In any case,” the expert added. “What’s really important is that it succeeded last weekend when the gaps were filled from the end of April. As we have said before, the real key is that we are still seeing upwards trends after the first round of French elections.”

Gráfico diario del Ibex 35

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