Ibex regains 9,400 and heads towards annual highs
Other European markets register moderate gains
- A session marked by terrorist attacks in Germany and Turkey
- Dow Jones looks likely to break 20,000 point barrier
- Euro hits lowest level since 2003 against the dollar
The Ibex 35 finished strongly to close with a gain of 0.76%, which allowed it to regain the 9,400 point level, finishing at 9,407.90. The Spanish index led the board amongst major European markets on Tuesday.
On Wall Street, the Dow Jones is flirting with the 20,000 mark and is quoting historic highs in a session marred by terrorist attacks taking place in Germany and Turkey. German police have doubts that the person they have in custody committed the atrocity which left 12 people dead.
In the business world, Mediaset España was the most impressive stock in the Ibex, rising 4% after Vivendi confirmed its intention to raise the 30% of capital needed for its Italian sister company, which shot up 24% in Milan.
OHL rose 9% after publishing that it will sell its subsidiary in the Czech Republic for an expected sum of 50 million euros.
In the heavyweights in the Ibex, Repsol gained 1.7% and accumulates a rally of 14% since the OPEC members reached an agreement to cut production. In addition, Telefonica rose 1.8%, Santander 1.6%, and Endesa marked a historic high of over 20 euros per share.
At a strategic level, BankInter revised its advice for rising stocks and redirected its strategy from preserving its assets, to achieving profitability. The bank's experts estimate a potential valuation of 9% higher for the Ibex towards the end of 2017, to 10,200 points. Its five emphasised stocks for the year are Inditex, Bankia, CaixaBank, ACS and Acerinox.
In the economic sector, Japan's central bank has opted to maintain its current interest rates, at the same time as an improvement for the first time during the term of current governor Haruhiko Kuroda. In the report published at the end of its monthly meeting, the bank concluded that a "moderate expansion" would take place in 2017.
In the foreign currency market, the euro once again marked low with its lowest value against the dollar since January 2003, falling to 1,0350. Analysts predict that in 2017 it could reach parity with the US currency, due to the policies of the ECB and the Federal Reserve.
Also on Monday, the International Monetary Fund confirmed that it was supporting its managing director Christine Lagarde, who was found guilty of negligence in a French court on Monday relating to a case with controversial French businessman Bernard Tapie.
TECHNICAL ANALYSIS
The Ibex is little more than 1% away from 9,544 points, its annual high, after falling more than 20% from that level due to Brexit. "This benchmark is important because of the fact we are talking about a weekly and monthly downside gap, with which we started the year, " explained Bolsamania technical analyst José María Rodríguez.
