The Ibex 35 closed with falls of 1.27%, down to 8,700.80 points, weighed down by the bad performance of large securities such as Telefónica (-2.03%) and Naturgy (-2.88%), Iberdrola ( -1,83%) and Endesa (-1,04%), which this week have set record highs. Siemens Gamesa (-4.69%) and Merlin Properties (-2.87%) also had a bad day. After this fall, the selective already looks closely at its annual minimums.
- 11.154,600
- 1,56%
The highlight of the day was the departure of the DIA Council from the last two representatives of LetterOne. Some people interpret these marches as a symbol of the confrontation between Fridman and the rest of the Council of the supermarket chain. The company has slipped another 8.34%, to 0.4097 euros, and continues with a downward spiral that looks very bad.
On the positive side, the highlights were Cie Automotive (+ 3.56%), Viscofan (+ 1.93%), IAG (+ 1.77%) and Inditex (+ 1.31%), although they have been the few values in green. Zara's parent company has rebounded after dropping 4% yesterday, affected by the profit warning of British retailer Asos and the weak sale of H&M. Even so, analysts such as RBC continue to have the Galician textile among their favorite bets for next year.
BREXIT, CHINA AND FEDERAL RESERVE
The day has been full of news that has increased uncertainty. The leader of the British opposition, Labour leader Jeremy Corbyn, has announced a motion of no confidence against the Prime Minister, Theresa May, a procedure equivalent to a disapproval. May has reported that the vote in the British Parliament on her Brexit agreement will take place in the third week of January.
The market also analyzes the words of Chinese President Xi Jinping in the celebrations of the Chinese economy. Experts warned of the importance of this anniversary to really see the willingness of China to reach a trade agreement with the US.
Xi has claimed the ways of doing things of the Asian giant and has said that we must "stay on course" before the recommendations of reforms in the country.
Meanwhile, one day after the Federal Reserve (Fed) announces the last rate hike of the year, Donald Trump has again attacked the central bank and has warned about the increase in rates. Trump said it is "impressive that with a very strong dollar and virtually no inflation" the Fed is even considering raising rates, given that, at the same time, "the outside world is bursting," and "Paris is burning."
As for the data of the day, the German IFO index, which measures the confidence of German businessmen, has dropped to its lowest level in the last two years. The market's concern about economic growth, the monetary tightening of central banks and trade tensions between China and the US is one of the main reasons to explain the poor performance of European stock markets at the end of the year.
This concern is also reflected in the commodities market. Brent oil is the protagonist because it has set new annual minimums, falling 3.5% to 57.52 dollars. In the currency market, the euro increased in value 0.2% to $ 1.1370.
TECHNICAL ANALYSIS OF THE IBEX 35
"There is no strength, none." For much of the session we saw the Ibex drop half a percentage point, holding the rate relatively well despite Wall Street's 2% drop on Monday, but in the end the falls took over. And we close to the annual minimums, and what's more, things have to change a lot or I'm afraid we're going to test the strength of the support area of 8,630 points, "says José María Rodríguez, an analyst at Bolsamanía.
"After drilling that figure, we will find the following stops at 8,500 points (end of 2016) and below there is nothing really important until the Brexit minimums, that is, we are at price levels of two years ago. Far from improving Wall Street, it is getting worse every day, as evidenced by the support drilling in the S&P 500, which is currently testing the support it has at annual minimums, the February minimum of 2,532 points ", adds this expert.
"The only thing to hold on to," concludes Rodriguez at this time "is the fear that is experienced in the markets". Although it would be missing, in my opinion something, a little more panic. Only then will we be able to build a rebound, a short-term market floor. But nothing more. In the best of cases we are talking about a rebound to continue falling later. In fact, if we believe the 'head and shoulders' of the S&P 500 can bet on new falls (with its intermediate rebounds) to the area of 2,300 points. That is, 10% more falls. "
