The Ibex looses the 10,400 points burdened by Inditex and BBVA

It was a bad day for the German Dax 30 that has violently swung downwards while the profitability of the bund, the German bond, rises once again. The German index falls more than 1% and leads the sales in the great European stocks.

Coming back to the Spanish stocks, if on Wednesday the main characters were Santander and Ana Botín, today it has been BBVA and Francisco González. The basque entity closed 2017 with an improvement in profits of 1.3% up to 3,5bn euros, after registering a negative impact of more than 1bn euros because of its participation in Telefónica. The market hasn’t received these figures well and BBVA falls a 1.7% just behind Inditex (-2%) in the worst values of the Ibex.

On the other hand, Francisco González has confirmed his presidency at BBVA will end in 2019 when he is 75 and his succesor will probably be his current delegate advisor, Carlos Torres, or the executive advisor José Manuel González Páramo, ex of the European Central Bank (ECB).

In green, Gas Natural Fenosa has risen 1.3% after it was confirmed that the cuts to the retribution of the gas system that the government is preparing is less than the last days. Although it has been Indra (+2%) and Técnicas Reunidas (+0.9%), the highest risers of the day.

Regarding the agenda of the day, the publishing of business results has continued. Vodafone has announced earnings of 11.7bn in the last quarter, a 3.6% more than the year before.

MACRO DATA AND OTHER MARKETS

In the macro scenario, the January manufacturer PMI has been made known in Europe and the US. In Spain, the PMI is at 55.2, underneath the 55.7 expected. In the Euro Zone, it’s placed at 59.6, as predicted. Also in Spain, the Treasury has acquired 4bn in long term debt. In the US, the manufacturer PMI has gone up to 55.5 and the ISM of the same sector has risen to 59.1, in both cases over the expected.

All of this awaiting for Friday and the publishing of one of the macro data that is the most relevant of the session, the US January Employment Report, a relevant reference in the face of the rise in rates that is expected for March from the Federal Reserve. The consensus awaits the creation of 185,000 jobs and that the unemployment rate maintains at 4.1%.

In other markets, the euro/dollar is at 1.2472 (+0.47%) after the 2014 highs of last week over 1.25. On the other hand, Brent petrol has slowed its advance and lists flat (0.06%) at 69.06 dollars, after marking a few days ago 2014 highs at 71 dollars.

TECHNICAL ANALYSIS OF THE IBEX 35

“With every session that passes we distance ourselves more from the control zone of 10,600 points. Level that we have repeated once and again that we have to leave behind and with space to trust our index. And meanwhile we have a violent swing downwards after filling in the falling space of the session this Tuesday”, explains José María Rodríguez, analyst in Bolsamanía.

“And in the meantime we don’t dismiss the possibility of price testing the support of the 10,300-10,315 points ,the rising space of January 5. Maybe from that support and after filling our rising space our index might gather its strengths and attack the November highs again”, adds the expert.

“In the blue chips we still see there are two firms off course: Telefónica and Inditex. The telephone company only has as a support the 2017 lows in 8.10 euros while the textile gian is going downwards in 27.65 euros. A lot of things have to change this Friday or Telefónica going over its resistance last week has been a mere mirage”, concludes the expert.