- Only Mediaset has closed with falls
- The big fishes of the Ibex have registered important rises
- Wall Street celebrates the republican agreement over the tax reform bill
The Ibex 35 has forgotten the falls and this Monday it has closed with a 0.92% rise which has placed it in the 10.249 points. This has put an end to a five session red streak. The selective faces the key week in Catalonia in positive in spite of the uncertainty, which is very high, and isn’t the greatest ally of the market. Until Thursday, the day of the Catalan elections, we won’t see its effect on the Ibex 35.
- 11.154,600
- 1,56%
All the values except one have closed with rises, although the Mapfre figures have to be highlighted, which have led the advances of the Ibex (2.67%). In the highest part of the table, Indra has followed with a rise of 2.48%. These two figures have a prominent deposit percentage from the US. In the case of the insurance carrier it’s a 24.1% and of Indra a 11.9%. So the advances in the tax reform bill has been beneficial to them.
This Monday, the five big fishes of the Ibex have closed with important rises. BBVA has been the highest rise with a 1.44%, followed by Telefónica with a 1.33%. Iberdrola has also risen almost 1%. On the other hand Banco Santander and Inditex, the two heaviest companies of the selective have closed with rises of 0.84% and 0.18% respectively. The textile company has been the smallest rise.
On the other side of the spectrum, only Mediaset has closed in red, with a light fall of 0.31% down to 9.57euros. The audiovisual company is the third to register the largest fall in the year, only after Técnicas reunidas and Siemens Gamesa. On the other hand, Bankia has gone up a 2.15% after letting know of its intention to adjust 2,500 people of its workforce after its merge with BMN.
It’s feared that the result of the Catalan elections is so fragmented that the region becomes an ungovernable Autonomous Community and there are those who are already setting dates for a second round of elections. The other option is a triumph for the pro-independence people. It could mean more tension for the Ibex.
“The worst possible scenario for the stocks would be an absolute majority of the pro-independence block, that would leave things as they were before the summoning of the elections. With a local government against the central government, which would increase the negative impact that this political conflict is having in the regional economy, an impact that could end up affecting the rest of the country” Link Security experts point out in their daily report.
OTHER MARKETS
The rest of the European stocks have also closed on a positive note. The German DAX30 has increased its value 1.64%; the French CAC, a 1.42% and the FTSE100 in London has advanced a 0.57%. The stocks of the Old Continent have been boosted by the US republican agreement on Trump’s tax reform bill.
This also pushes Wall Street, that contributes with average rises of 0.7%. The New York stock continues its rally and marks new records while they wait for Congress to approve the tax reform bill this week.
“It’s expected that the project for tributary law is voted tomorrow in the House of Representatives (chamber below Congress) and then in the Senate (high chamber), to be sent later to president Trump so he approves the law before Christmas. If this calendar is followed without any incidents or delays, it’s plausible that this factor will become a catalyst in all the western stocks of the ‘Christmas rally’”, Link add.
In other matters, the launch of the future bitcoins in the CME stock in the early morning have boosted the cryptocurrencies expectancy. The bitcoin is priced at 18,945 dollars approximately this Monday, according to the bitcoin price index in the Coindesk. On Sunday they marked new records in 19,666 dollars.
In the commodities market, petrol goes up with strength (+0.3%) due to the interruption of the pipeline in the North Sea. The crude Brent is priced in 63.5 dollars the barrel, while the West Texas is at 57.47 dollars.
As for the data of the agenda of the day, the only relevant reference has been the inflation of the eurozone, that rose 1.5% in November, in contrast with 1.4% in October. As for November of 2016, the rate was at 0.6%. On the other hand, the EU annual inflation was 1.8% in November this year over the 1.7% of October.
TECHNICAL ANALYSIS
Sesion of important rises after five consecutive closes in red in the Ibex: “It’s true that from the technical point of view these rises have no implications of any sorts but it’s still useful to get closer to the key resistance, the maximums of November of 10,600 points,” points out José María Rodríguez, Bolsamanías technical analyst. In Europe the DAX has pulverized the resistance this Monday and the CAC 40 and the Euro Stoxx 50 are close behind. “This means that the ensemble of European indexes could be close to attacking the resistances that are presented in the high part of the lateral movement of the last month,” and that the Dax could be giving the first step.
In any case, “let’s not fool ourselves, what’s important is what happens at the close of the week. And even more so when this week it will collect the result of the Thursday Catalan elections. Without a doubt the close this Friday can be decisive in one way or another,” concludes the analyst.