- Political tension present throughout much of Europe
- European stocks seen vulnerable after first rejection of Trump
- Abengoa receives capital injection of 1.1 billion euros
The Ibex 35 was capable of staying above 10,300 points on Monday, a level it looked like losing for most of the day. The index fell 0.06%, after recovering from a loss of more than 1%. In the end the Ibex closed on 10,302.9 points.
- 11.154,600
- 1,56%
Steel companies faced the worst performance during Monday’s session along with the banking sector. The wooden spoon was picked up by ArcelorMittal, which fell 4.66% to 7.6 euros, in its seventh consecutive fall. The second worst stock was IAG, after it finished 2.8% to 6.1 euros. Bank of America Merrill Lynch cut its rating to Underperform from Buy. However, the majority of analysts still have a Buy rating for IAG. Acerinox, which fell 2.69%, accompanied them in the bottom part of the table. Repsol also had a bad day, losing 0.52% to 14.29 euros, hampered by the falling price of oil. Brent crude was at 50.75 dollars at the close of European markets.
Returning to the banks, Popular was the worst performing bank with a fall of 0.87%, followed by Santander which had a decline of 0.87% to 5.6 euros. Caixabank also fell by 0.26%. However, BBVA closed slightly higher by 0.03% at 7.1 euros.
Melia Hotels was the best performing stock on Monday with a gain of 2.12% to 12.78 euros. It was followed by Iberdrola, which gained 1.34% to 6.57 euros and Grifols, 1.22% higher. However, thanks to the 0.63% gain won by Inditex, and the 0.05% by Telefonica, the Ibex 35 was able to close above 10,300.
In the general stock exchange, Abengoa was once again the big talking point. The company received a capital injection of 1.1 billion euros on Monday, and started the week with important gains but ended up losing 3.22% in its class A shares and 1.51% in its class B.
OTHER MARKETS
Donald Trump’s first rejection in his first three months as president affected global markets. European stocks closed in negative on Monday. The DAX 30 in Germany fell 0.57% and the CAC 40 in France 0.07%. The FTSE 100 dropped 0.59% two days before Theresa May is set to trigger Article 50.
Wall Street also suffered Congress rejected the healthcare legislation introduced by Trump to replace Obamacare. The three main indices had losses of around 0.5%. Investors await the introduction of fiscal reform. However, the most vulnerable right now is the dollar, with the euro hitting annual highs against the US currency of 1.09 dollars.
TECHNICAL ANALYSIS
César Nuez, Bolsamanía technical analyst, commented that it was another day of little significance for the Ibex 35.
“For the moment, the upward trend of the last few weeks has given little signal that it has weakness in the series of prices,” Nuez said. “We will not see much complications technically as long as it maintains this current level.”
