- Spanish index drops 0.07% to 10,876 points
- June will arrive full of references for the markets and political events
The Ibex 35 closed 0.07% lower on Tuesday after movements which saw it as low as 0.7% during the session, falling to 10,876 points. Other European markets also finished in the red, apart from the Portuguese PSI 20.
- 11.100,800
- -0,48%
The highest performers on Tuesday included Amadeus, with a bounce of 4.18%, following two sessions where it led the losses.
Aena and IAG, both airline related stocks, rose strongly by 2.80% and 2.35% respectively. Among the blue chips, Inditex ended the day with advances of 1%, and Iberdrola of 0.34%, while Repsol was flat (-0.07%). Banco Santander was 1.07% lower and BBVA lost 1.64%, the second worst performer.
Gamesa picked up the wooden spoon on Tuesday with a drop of 2.24%, while ACS was 1.58% lower.
All this comes as we head towards the end of May, a month of transition in the markets in expectation of several key dates in June. The Ibex will face up to two central bank meetings, two key elections in France and the UK, a PSOE congress, the end of the Popular affair and results from Inditex. A lot of reference points that promise to twist and turn the markets.
On Tuesday, Emmanuel Macron and Vladimir Putin made the news as the new French president faced up to his Russian counterpart, as he did last week with US president Donald Trump. Macron appears to be gathering merit ahead of the legislative elections in France on the 11 and 18 June.
Greece and Italy also occupied the papers on Tuesday. Greek finance minister said on Monday that its creditors must reach an agreement about alleviating its debt in the next meeting, which will take place in June. Meanwhile, ex Italian prime minister Matteo Renzi said at the weekend that the next elections in the country would take place at the same time as those in Germany, in September.
With respect to the UK, the general election is just around the corner. Theresa May and Jeremy Corbyn summed up their proposals for Brexit on Monday. May reiterated that she prefers no deal than a bad deal with the EU. Corbyn guarantees an agreement of some sort if he is to win the elections.
TECHNICAL ANALYSIS
José María Rodríguez, technical analyst at Bolsamanía, said that Tuesday’s session “did not have a clear direction, and closed pretty much flat after a downward opening of 0.7%. We continue to remain in the no man’s land between the support of 10,380 and the resistance of 11,885. In the medium term the tendency is still very much upward.”
“The banks must take the blame for the Ibex not being able to finish positive on Tuesday. BBVA and Banco Santander fell significantly, as did many other major European banks.”
