Ibex nudges higher and finds itself above 10,200 points
EU and UK fail to reach agreement although it appears imminent
- Wall Street ended Monday in the red
- In Catalonia, the electoral campaign kicks off for 21 December
The Ibex 35 sits on 10,200 points after a day marked by the negotiations between the EU and the UK. Despite registering losses for much of the day, the Spanish selective eventually closed in the black, with a gain of 0.03% to 10,211 points.
IBEX 35
11.588,400
-
-0,74%-86,40
- Max: 11.677,00
- Min: 11.428,00
- Volume: -
- MM 200 : 11.100,36
Gas Natural was the best performer on the day after rising 3.2%, followed by Colonial (+2.63% and Cellnex (+1.58%). On the fallers side was Arcelormittal (-1.95%), as well as Sabadell with a loss of 1.49% and Bankia, which dropped 1.28%.
The banking sector was one of the main guilty parties, as Bankinter dropped 1.13%, Santander by 0.34%. The Cantabrian bank lowered its job cuts to 1,100 after the fusion with Banco Popular.
ACS closed 1.16% lower after Oceanwood, the shareholder of NH Hotel and Liberbank, shed 1% of its capital.
Siemens Gamesa was down 0.64% on the day after announcing that it withdrew from ERE and it would cut 272 employees in Spain. Analysts from JPMorgan also cut its stock valuation by 5% to 10.40 euros.
CATALONIA
Here in spain the eyes are focused on the beginning of the electoral campaign for elections in Catalonia on 21 December. Reports suggest Ciudadanos candidate Inés Arrimadas will perform well as new polls come out.
BREXIT TALKS BREAK DOWN
Negotiations between the EU and the UK broke down despite talk of an agreement being reached on Monday. European Commission president Jean-Claude Juncker said that UK PM Theresa MAy is a “tough negotiator”, but that does not mean that the conversations were finished. The main issue lies on the border between Northern Ireland and the Republic.
The break in the agreement was seen to affect the FTSE 100, which closed down 0.03%. Meanwhile, gains were seen in the rest of the Old Continent, and led by the PSI 20 which was up almost 1%.
TRUMP TAX REFORM & WALL STREET
The US will continue to attract headlines in the coming days. After the passing of Donald Trump’s tax plans through Senate, the legislation will move on to the next step and could be approved before the end of the year.
Regarding data from the session, the Australian Central Bank maintained interest rates at 1.5%, as was expected. In China PMI services was at 51.9, above what had been forecast. In Spain services PMIs were at 54.4, below what was forecast.
TECHNICAL ANALYSIS
According to Bolsamanía expert José María Rodríguez, Tuesday’s session “brings us a little closer to the resistance in the short term that we find in last week’s highs of 10,323”. However, he warned that “even so we still cannot be under any illusions, as the index continues to be the weakest in Europe in recent weeks.”
Despite that, the analyst said “at least we are clear above the 10,600 level we will have a round figure with significant implications for the price.”
