The Ibex 35 closes with falls dragged by the banking sector despite Inditex

The textile company chaired by Pablo Isla announced its results on Wednesday, before the opening of the stock market. Specifically, Inditex increased its profit by 7% in 2017 (between February 1, 2017 and January 31, 2018), to 3,368 million euros. The consensus expected a profit of 3,350 million, and have received the figures with strong volatility: the giant has started the day rising more than 1% and in a few minutes has turned around and has fallen to 2%. The company, which has come to drop almost 5% this Wednesday, has ended the session with a revaluation of 3.83%, to 25.19 euros per share.

However, the behavior of the second largest company of the Ibex has not been able to affect the effects of the first: Banco Santander has fallen 1.87% and has been one of the most bearish values. The 'red lantern' has been Grifols (-1,93%) and the third most bearish, BBVA (-1,50%).

The rest of the banks listed on the Spanish index also closed the session in red (CaixaBank: -1,215, Bankia: -1.12%, Banco Sabadell: -0.93%, Bankinter: -0.78%).

ACS LEADS PROFITS

On the other side of the table, ACS has led the increases to revalue up to 8.12%. The construction company headed by Florentino Pérez will create a joint venture with Italy's Atlantia to acquire the Abertis concessionaire (+ 0.08%). In the statement sent to the National Securities Market Commission (CNMV) on Wednesday, it has confirmed that the price of the offer will remain at 18.36 euros per share. After this news, the company's price has been suspended for a few hours.

In the upper part of the table, ACS was followed by Inditex and Siemens Gamesa (+ 3.66%). It should also be mentioned that Merlin Properties has risen 0.83%, while Mediaset has fallen 0.11% after the ratings made by Bankinter analysts hit home.

OTHER STOCKS

The rest of the European stock exchanges have also finished with losses the session, except the German Dax 30 index, which has achieved a very slight rise. In addition, the day after seeing important declines in Wall Street (Dow Jones: -0.68%, S & P: -0.64%, Nasdaq: -1.02%), the falls remain in the New York Stock Exchange at the close of the Spanish stock market. Also in Asia, relevant cuts were listed.

TILLERSON, MERKEL AND BCE

The new crisis in the Administration of Donald Trump is news in the United States after its Secretary of State, Rex Tillerson, has been dismissed. Experts say another figure that represented a more moderate bias is going - in the style of the more moderate economic bias of Gary Cohn, Trump's economic adviser who has left the post recently after the approval of steel and aluminum tariffs - and that his place happens to be occupied by a more aggressive profile represented by Mike Pompeo, director of the CIA. Pompeo will be responsible for directing one of the historic challenges of the United States: the face-off between the US president and North Korea's leader, Kim Jong-un.

And while the position of the United States seems to tend to radicalize, in Europe it seems that 'the waters return to their course' on the political plane. On Wednesday, Angela Merkel will be sworn in as chancellor of Germany for the fourth time after the Social Democratic militants voted on March 4 in favor of the grand coalition government. It is hoped that Merkel's inauguration will reactivate the European political landscape and that Germany and France take the lead to advance the reforms. At the moment, Merkel announced on Monday that she will travel to France to meet with the French president and move forward on the joint proposals for the Euro Zone and the immigration and defense policy of the European Union (EU).

Mario Draghi has also been relevant this Wednesday. The president of the European Central Bank has spoken on Wednesday from Frankfurt to refer to the future monetary policy in the European bloc. The forecasts for inflation are positive, but with rates that will not come close to the 2% target until after 2020, the date by which then the Italian chair will have been occupied by his successor. "We see inflation moving towards our goal in the medium term, we are more convinced than in the past that this convergence will occur," said the banker.

In addition, from the international business point of view, Société Générale would be in talks to buy Commerzbank's variable rent, markets and commodities division, said Reuters quoting the German newspaper Handelsblatt. In Spain, Abertis (+ 0.1%) and ACS (+ 7.6%)are news, which have returned to trading after being suspended all morning and once they have detailed the details of the ACS-Atlantia pact to be made with Abertis.

In terms of data, the industrial production of the Euro Zone in January rose 2.7% and employment grew at a rate of 1.6% in 2017.

TECHNICAL ANALYSIS

"This Wednesday's session is misleading because despite closing virtually unchanged we have seen important movements in many of the important firms," according to José María Rodríguez, technical analyst at Bolsamanía.

"In some way, the significant rises in Inditex (which fell by more than 5% in the first hour) compensate for how badly the financial sector has done today." Banks have fallen sharply with BBVA and Banco Santander at the head", explains the expert. "And what's worse, rebounds aside we have figures that do not exactly invite optimism in the coming weeks," he adds.

"Santander has clearly drilled the support of 5.4 euros and this is a clear sign of weakness, and meanwhile it seems that Telefonica holds the rate, I hold on to the 'round trip' session of Inditex without a doubt, which closes with significant increases and with one of the largest trading volumes in its history, technically, it seems that the worst has already happened for the textile giant,"Rodríguez concludes.