The Ibex falls a 1.44% and loses the 10,100 points

After the strong losses on Friday, with falls close to 2% in Wall Street and 1.8% in the Ibex, the Spanish index continues in free fall. Also in Asia the main stocks have started the week on the wrong foot (Nikkei: -2.55%).

In gren only two companies. ArcelorMittal (+1.08%), Banco Sabadell (+0.84%) and Abertis (that has closed flat) have been the only figures that have managed not to close with losses this Monday.

On the other extreme, Técnicas Reunidas has led the falls after dropping a 4% in the session. DIA has followed with a 3.15% fall after the Russian Mikhail Fridman, owner of the largest Russian supermarket chain has gotten 25% of the Spanish group.

In red also Siemens Gamesa that has dropped a 2.9% amidst the rising protests for its decision of closing the plant at Miranda de Ebro.

Also the constant downwards dripping of Telefónica (-1.85%) is burdening the Ibex. From the technical point of view, the telephone company has marked a new falling low and has gone through the 2017 support figure at 8.10 euros. In José María Rodríguez’s point of view, technical analyst of Bolsamania, “after the swing of the Ibex, many heavy titles are worsening the technical look of the Ibex, especially Telefónica”.

Also, Iberdrola has gone over Telefónica for once in stock value, around 12pm for 10m euros. The electric company went down to fourth place on the Ibex 35.

Among the blue chips of the Ibex, Inditex drops almost 1% despite analysts in Alphavalue seeing value in the company although the textile company has registered a correction of 8% in the past three months.

As for the banks, the technical analysts of Deutsche Bank are betting on Caixabank which they maintain in positive rating and with a target price per stock in 4.95 euros although the entity has fallen a 1% down to 4.192.

EUROPEAN STOCKS

In the rest of the European stocks, again the red numbers impose on the big indexes. The losses go over 1% in the case of the CAC 40 and the Footsie 100, and they’re placed at 0.6% in the Dax 30.

AGENDA

As for everything else, this Monday there is a first rate meeting between North and South Korea and without the excuse of the winter Olympics that start on Friday. Also, Germany is in the news. Angela Merkel and Martin Schulz haven’t managed to reach an agreement for now to form the coalition. Also this week will be Luis de Guindos’ week or not. On Wednesday Mariano Rajoy will present him as candidate for the vice presidency of the ECB and on the same week we will know if he has been elected or not. There are a lot of doubts regarding his election.

As for the agenda this session, on Monday the January services PMI’s have been announced in Europe. The PMI in Spain has been over 56.9 over the 55.4 estimated. In the EuroZone it was at 58 versus the 57.6 estimate. Also the president of the ECB, Mario Draghi “This week, the speeches of the members of the Fed and the rates meeting in the Bank of England are the key dates to watch out for. The Fed speeches will be particularly interesting after this wages growth that the US employment rate showed on Friday”, point out the Danske Bank analysts.

TECHNICAL ANALYSIS

According to Bolsamanía’s technical analyst, the week has started “leaving a falling space in the 10,211 points that could be weekly”. Last week’s falls place the Spanish index very close to the 9,900 support, the base of the lateral movement last summer and it still has to go over the 10,600 resistance threshold.

Rodríguez points out the bad behaviour of Inditex and Telefónica. “The first of them seems decided to look in the support zone in the 26.40 euros (2016 lows)”, points out the analyst. On Telefónica he explains that “it doesn’t present any supports of any kind within the normal parameters” since “none of them has gone through the important support”. For that, the analyst thinks that “everything seems to be part of a corrective phase or reaction phase to the important previous rises”.