Ibex 35 falls: loses 8,300, next goal?

Falls of the Ibex 35: Will it lose 8,300 points at the weekly closing?

The IBEX 35 advances in the red numbers after the negative opening with which the Wall Street session began today despite the fiscal injections announced yesterday by the president-elect Joe Biden and by the Fed’s own bank. The selective drops 1.69%, to 8,230 points. After the closing, the selective of the Spanish stock market left 2% in the week, after closing the previous one with an advance of more than 4%.

In the Investment Strategies analysis department they recognize that the minimum that the Ibex 35 left in the week, at 8,037 points, it is the level to watch in the short term and “as long as that level is not lost, there will be no selling pressure”; says Luis Francisco Ruiz, director of analysis of Investment Strategies. See more … This expert also considers that, for a longer term, the December lows are also a reference level: at 7,663 points. “If this level is lost, which corresponds to the 3,509 of the S&P 500, things would begin to weaken.” If for whatever reason, despite the fact that the seasonality favors rises in the indices, they are not capable of rising and those December lows are lost, it implies that the market is very weak.

Among the most penalized values ​​of the session, banking. Banco Sabadell cedes 5.4% to 0.3813 euros; Caixabank yields around four percentage points as does Bankia, which closes at 1.5265 euros. Santander gave up just over 2.8%, to 2.7205 euros and BBVA ended the session at 4.0880 euros.

Morgan Stanley analysts improve the target price of three Ibex 35 banks. Bankinter’s rise to 4.70 euros, from 4.15; that of Banco Sabadell, up to 0.42 euros, from 0.35%, and that of BBVA, up to 4.70 euros from the 4 euros per share of its previous estimate.

Among the stocks that fell the most were Indra, which lost 3.7% at the close, Acerinox and CIE Automotive, which will start trading at 9.4220 euros and 21.44 euros, respectively, on Monday.

Two analysis houses have revised their estimates on Repsol. JP Morgan now places the target price of the Spanish oil company at 8.5, from 8 euros, and those of HSBC reduce it to 8.9 euros, from the previous 9.7 euros. The titles of the oil company yield more than 2.3% and close at 8.6520 euros.

Of the rest of large values, Iberdrola corrects more than half a percentage point, to 11.9150 euros; Inditex lost more than 0.9%, up to 26.06 euros. Telefónica dismisses the session at 3.7500 euros.

Only one value closes positive. Meliá rises more than 0.26% and closes at 5.73 euros. Grifols closes flat at 24.13 euros.

Among the news of the day, Naturgy has entered the United States renewable energy market after buying, through its subsidiary Naturgy Solar USA, 100% of the economic interests in Hamel Renewables in the North American country

The credit rating agency Moody’s Investors Service (Moody’s) has raised Endesa’s long-term credit rating from Baa2 to Baa1 with a stable outlook. Likewise, Endesa’s short-term credit rating remains at P-2.

In the Continuous Market, the highest increase is that of Faes Farma, which adds 7.3% at the close after iReport that it will invest about 150 million euros until 2024 in a new pharmaceutical production plant in the Basque Country in order to triple its industrial capacity, while Oryzon Genomics became the red lantern of the Spanish stock market by losing 6.96%. On Monday it will start trading at 3.8750 euros.

Adolfo Domínguez multiplied by seven his losses in the first nine months of his fiscal year 2020-2021, closed on November 30, to reach 14.96 million euros, due to the impact of the Covid-19 health crisis. Its shares closed at 4.78 euros after losing just over one percentage point at closing.

Spain’s risk premium is reduced to 59.80 basis points, while the interest of the Spanish 10-year bond falls to 0.058%.

Again markets pending the evolution of the pandemic, the vaccination process and the measures that governments are taking to control the third wave. Although the number of coronavirus infections reported by the Ministry of Health yesterday was lower than that registered on Wednesday (38,869), the 35,878 this Thursday is the second worst record in the series that began almost a year ago. Faced with such a worrying increase in cases, Fernando Simón pointed out that “complete confinement does not seem necessary right now” although “we will do it if necessary.”

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In Europe, Governments are also carrying out perimeter lockdowns in order not only to contain population movements but to prevent the spread of the new variant of the virus. In this sense, Pfizer has communicated that it will temporarily reduce deliveries to Europe of its vaccine against Covid -19 while increasing its production capacity, as reported by the company this Friday.

In this sense, Many European countries say they are receiving lower-than-expected supplies of COVID-19 vaccines and complain in internal meetings about uncertainty about future deliveriesEU authorities told ., as distribution progressed unevenly between the bloc states. About a third of the 27 EU governments have mentioned “insufficient” doses of vaccines in a video conference of health ministers on Wednesday, according to a person who attended the virtual meeting. They also complained about uncertain dates for future deliveries, the official added, without naming any country.

An uncertainty that continues to weigh on European indices. He DAX it closes at 13,785 points. He FTSE 100 loses slightly more than 1.4%, to 6,720 points, the CAC 40 yields slightly more than 1.3% over the 5,600 integers and the FTSE MIB it closes at 22,378 points.

The number of coronavirus infections in Germany exceeded two million while the death toll reached almost 45,000, according to data released Friday by the Robert Koch Institute (RKI) for infectious diseases. Alarmed by the high infection rate, death toll and recent COVID-19 mutations, Chancellor Angela Merkel said Thursday, during a meeting of senior officials in her party, that she wants “very quick action.”

Wall Street opens negative despite Biden’s program and Powell’s words

The IBEX 35 keeps the red after the negative opening with which the session started today Wall Street despite the fact that the chairman of the Federal Reserve (Fed) made it clear that the US central bank had no intention of starting to backtrack on its ultra-lax monetary policies, statements that somewhat contradicted some other statements by members of the Fed’s Open Market Committee (FOMC) in which they were in favor of starting to think about “withdrawing” monetary stimulus if the economy was solid.

Opening with falls on Wall Street. The Dow Jones falls 0.60%, to 30,807.74 points and the S&P 500, 0.29%, to 3,786.39 points; while the Nasdaq rises 0.19%, to 13,138.12 points.

All investors’ attention on the presentation by the president-elect, Biden, with the bags closed, of his fiscal program of aid to those affected by the pandemic. The fiscal aid program presented by Biden has not been entirely well received by the markets, as evidenced by the fact that the futures of the main US indices are clearly lower today and that the Asian stock markets have mostly closed with losses ”, they indicate from Link Securities.

The program, which Biden intends to be supported by both parties, It includes many of the aid proposals that Democrats had been putting forward in recent months, but, on some issues, it goes beyond what is strictly related to the pandemic. The problem is that some items in the proposed 1.9 trillion program will need the support of 60 senators to become law.

Democrats control only 50 after the Senate elections in Georgia, so they must have at least the support of 10 Republican senators, something that, due to the content of some of the proposals, is far from being assured since, if they leave Going forward with the plan, it would lead to a sharp increase in debt.

The main appointment of the day has been in the publication of the quarterly results of three major US banks: Citigroup, JP Morgan and Wells Fargo.

JPMorgan Chase, the largest banking group in the United States, obtained a net profit of 29,131 million dollars in 2020, 20% less than the previous year, although it achieved good results in the fourth quarter. The entity noted the impact of the pandemic during what it considered a “complicated year”, but managed to increase its accumulated turnover by 4% year-on-year, to a record of $ 119,543 million.

Citigroup obtained in 2020 a net profit of 11.370 million dollars, 41% less compared to the previous year, impacted “massively” by the covid-19 pandemic. The third entity in the country by asset, despite everything, managed to keep its annual turnover unchanged, which stood at 74,298 million (0.02% more).

Wells Fargo, meanwhile, reported a net profit of $ 2.99 billion (64 cents per share) for the quarter ended December 31, compared to $ 2.87 billion (60 cents per share) for the last year.

At the political level, tensions between the US and China are growing. Trump Administration imposed new sanctions against China on Thursday and some of its biggest companies for alleged wrongdoing in the South China Sea. It also added nine other companies from the Asian country to its blacklist. The measures further increase tension with China, Washington’s strategic rival in Asia, days before President-elect Joe Biden takes office. The Democrat’s transition team did not immediately respond to a request for comment.

The euro yields against the dollar and it is exchanged at 1,2099 greenbacks.

Oil price falls close to 2%, given the concern that the market generates the new confinements in Chinese cities, given the increase in cases of coronavirus in the country; This reduced optimism due to the data on crude imports precisely from the Asian giant, as well as the economic stimulus plans in the US. The benchmark Brent oil in Europe lost 2.34%, to $ 55.08 per barrel, while West Texas fell 2.30% to $ 52.34.

With these decreases, the European benchmark is heading towards its first fall in the last three weeks, while US crude maintains weekly increases for the third consecutive week.

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