- Angela Merkel retains chancellor position in Germany , although with reduced majority
- Mario Draghi assures that he will decide on stimulus withdrawal by end of year
Tension related to events in Catalonia affected the Ibex 35 on Monday. The index fell 0.86% and fell well below the 10,300 level (10,216), with which it closed on Friday. Once again, the banks were those which were punished by the situation in the north-east.
- 11.154,600
- 1,56%
The week of the Catalan referendum has begun. Although the courts have declared the independence vote illegal, the Generalitat is persisting with its efforts.
In fact, the main drag on the index was Caixabank, which fell 3.8% to 4.11 euros. The bank has close to a third of its business in the area. However, the rest of the banks were also affected. BBVA was down 1.88%, Sabadell and Santander by 1.1%. Bankia was down 1% and Bankinter by 0.19%.
As a result, Citi experts pointed out today that “the Catalan referendum, the minority of the government and the PP and the growth of the left at a local level are the biggest risks from the banks.”
Other stocks such as Mapfre (-3.17%) and ArcelorMittal (-2.82%) also were in the bottom part of the table. Among the better performers were Mediaset, with a gain of 1.7%, followed by Tecnicas Reunidas (+1.43%) and Grifols (+1.34%).
“Tension ahead of the illegal referendum of 1 October continues to weigh on the performance of the market, which in recent months has been lagging behind the rest of its neighbours. We understand that there will be investors who opt to cover their positions ahead of what might happen, while others are trying to reduce them. However, what we are sure of is that until the date passes we are going to see a relatively poor performance from the Ibex,” said Link Securities.
ANGELA MERKEL WINS AGAIN
On Sunday Angela Merkel and her party won the German elections. However, she lost support and has to deal with the arrival of a new force from the extreme right. The question is now which coalition will be formed, after the social democrats slumped to a historic defeat. The DAX 30 closed 0.08% lower after the vote.
In the agenda of the day, the IFO survey showed the business climate and expectations, which were at 115.2 points, below the 116 expected.
In addition, ECB president Mario Draghi said on Monday that he will decide at the end of the year about whether to withdraw stimulus in the eurozone.
“We will decide later this year on a re-calibration of our instruments that maintains the degree of monetary support that the euro area economy still needs to complete its transition to a new balanced growth trajectory characterized by sustained conditions of price stability,” he explained.
TECHNICAL ANALYSIS
Bolsamanía analyst José María Rodríguez said that for the ‘umpteenth’ session it remains clear, the main theme is ‘weakness of the Ibex 35 in comparison with our European neighbours’.
“While most markets stayed flat or with timid losses our index fell strongly and, even worse, without much hope for anything other than a fall down the numbers. That said, along with the graphic for today, it can be said that the next level of support we find at the upper gap of 10,040 points. Above, on the resistance side, we have at 10,410 points.”
