Ibex's winning streak comes to an end after falling more than 1%
Caixabank was the worst performer on the board after the sale of 1.7% of its capital
- Inditex dropped 3% after publishing its quarterly results
- Telefonica, BBVA and Santander all fall on Wednesday
The Ibex 35 saw its winning streak of seven days come to an end on Wednesday after a fall of 1.21% to 9,218.40 points. After rising more than 10% since last week's lows, it has been described as a "normal" corrective measure. It comes as the markets wait on the decision of the Federal Reserve on whether to raise interest rates.
The big loser of the day was Caixabank. After Critera Caixa invested 1.7% of its capital at 3.15 euros per share, its stock fell 4.3% to 3.12 euros.
Inditex also fell sharply on Wednesday. The owner of Zara posted its quarterly results, which showed a 9% rise in its profits for the first nine months of the year, to 2.2 billion euros. However, this increase did not satisfy investors. Amancio Ortega's company fell 3% to 32 euros.
Telefonica dropped 0.8% after reaching an agreement with Mas Movil to put an end to its dispute with Yoigo. In addition, BBVA closed with a fall of 1.5% and Banco Santander droped 1.29%.
On the other side of the table, Mediaset led the advances after another good shwoing, owing to its dispute with its Italian sister company of the same name against French group Vivendi, which has bought 12% of its capital and hopes to reach a stake of 20%. Arcelor Mittal (+1.3%) and Acerinox (+1.1%) were also amongst the highest risers.
At an economic level, the most relevant news of the day was the fact that the Bank of Spain raised by two points its growth forecast for 2017, to 2.5%, "as a consequence of a better evolution than anticipated three months ago."
As well as that, the Bank of Spain has warned that in recent months "uncertainties have intensified due to political and economic global circumstances, particularly in the case of the United States, where negative repercussions could have a global effect."
It's widely expected that US Federal Reserve chief Janet Yellen will announce an interest rate hike on Wednesday. Investors are going to be on edge however as they wait on Yellen's comments about future rate increases. Experts from Link Securities warn that there could be a collection of profits which will be deducted if the Fed decides to accelerate the rates.
Expectations of inflation and the policies of Donald Trump are putting pressure on the Fed to go this direction, even though its president may decide to maintain a pessimistic outlook on the economy.
Technical Analysis
"What is a fall of 1% after a rally of 10% following last week's lows?" affirmed Bolsamania technical analyst José María Rodríguez. "We must be prepared so that in any moment the Ibex 35 goes into deeper trouble, which should be expected after such an impressive rally."
