- Banking sector was the hamper for the Ibex 35, with average losses of 4%
- Euro hits another annual high and is above $1.1
- Wall Street registers gains of over 1%
The banking sector was once again the main villain during Wednesday’s session. The Ibex 35 registered its biggest loss since 2 November 2016, when it fell 1.85%. On Wednesday it fell 1.79% to 10,786.1 points. The banks particularly affected the index, although it was a bad day in general for most companies.
- 11.109,700
- -0,40%
Bankia picked up the wooden spoon with a loss of 4.27% to 1.05 euros. It was followed by Banco Popular, which was 4.16% lower at 0.66 euros. The two banks were also the protagonists of the previous session. Emilio Saracho’s bank informed of its potential sale, while Bankia had said that it was interested in purchasing the bank.
Caixabank finished 3.9% lower at 4.1 euros, while Banco Sabadell fell 3.45%. The big banks were also not immune from the losses, with Banco Santander falling 2.89% after Goldma Sachs saw a potential upside of 26%. BBVA fell 1.88%.
In general it was a disappointing session for the Ibex, with only Abertis able to finish higher, at 0.06% to 16.31 euros. Telefonica lost more than 2%, falling below 10 euros. Inditex fell 1.25% to 36 euros, while Repsol was 1.2% lower.
OTHER MARKETS
The losses were also present in most of Europe. The DAX 30 fell 1.35%, the CAC 40 fell 1.63%, while the FTSE 100 dropped 0.25%. However, the FTSE MIB lost the most finishing 2.31% lower.
On the other side of the Atlantic, Wall Street registered significant losses(Dow Jones: -1.15%; S&P 500: -1.07%; Nasdaq: -1.58%). US President Donald Trump’s ongoing scandals continue to weigh on investors.
IG analyst Daniel Pingarron said that European stocks saw their worst day in almost a year. “The losses had a purely US origin. The latest revelations that Donald Trump revealed classified information to Russia are leading to growing mistrust of the President from investors.”
The euro grew against the dollar and hit a new high of above $1.1. In fact at the close of European markets, the common currency had risen 0.54% to $1.1143. In commodities, oil also rose, 1.4% in the case of WTI, and 1.6% in the case of Brent.
TECHNICAL ANALYSIS
José María Rodríguez, technical analyst at Bolsamanía, pointed out that in recent sessions we have commented that the Ibex 35 registered in a narrow zone, far from the support of 10,530 points and above the annual highs of 11,185 points, and that within that range would be an anecdotal movement.
