European exchanges are listed with mixed sign at this time on Wednesday. The German Dax has marked historical highs, although it is now quoted flat. The Ibex, meanwhile, remains negative (-0.35%. 9,580 points), pressed by the cuts in BBVA, Santader, Telefónica and Inditex. All in all, peace of mind after a complicated Tuesday session that closed with a better than expected balance. China's coronavirus is still worrying, but the bags continue to show that they have endurance to face adversities. As for the Ibex, laterality persists; the selective does not lose supports (9,400) or overcome resistance (9,700).
In Asia, there has been a clear rebound after the sharp declines last day. Coronavirus cases continue to rise (there are already six dead and 400 infected) and experts say that investors remain very aware of this issue. Although the Chinese government has assured that the outbreak is controlled. All this on a day prior to the ECB meeting, the first of the year and that precedes that of the Fed, next Wednesday 29.
At present, the president of Sabadell, Josep Oliu, has raised the possibility of participating in a merger process in the face of investor pressure to reduce costs, "Maybe yes, we'll see", he said, as published by the agency EFE.
Further, S&P Global Ratings has placed the A- rating of BBVA (-1%) in a negative perspective due to the potential reputational risk related to the investigation of the 'Villarejo case'. This opens the possibility of a rating reduction if there are negative consequences for the bank and its ability to repay the debt.
In the Continuous Market, OHL has fallen 8% after HSBC has sold its 5% stake which he bought just a month ago, after a 40% revaluation in two weeks.
Internationally, business results continue to be published in the US. Netflix falls 2% after presenting figures, with increased earnings and subscribers in the fourth quarter, while IBM 3% rebound. In Spain, Bankinter will open the fourth quarter accounts season this Thursday.
On the other hand, the first vice president of the Government, Carmen Calvo, has ruled out Wednesday that the minimum interprofessional salary (SMI) go up from the current 900 euros to 1,000 euros monthly
In another order of things, the 'impeachment' against Donald Trump in the Senate began on Tuesday and He continued well into the night. While the US president boasts in Davos how well the US is doing thanks to him –and presses the Fed further-, the Democrats remain committed to their cause of political judgment. Its duration is unknown, but what seems more than clear is that will not go ahead given the Republican majority.
IBEX TECHNICAL ANALYSIS 35
"I don't like to end the session on Wednesday, especially since both the Ibex as our neighbors close close to the session lows. And also with a Dax that during the morning it marked new historical highs to close below also near the lows of the day and without confirming (in closures) the overcoming of the previous highs (13,597), "he argues José María Rodríguez, analyst of Bolsamanía.
"Now, everything suggests that again let's test the support area that we have at the base of the side of the last month: 9,460 points. It is important that the minimums of last week are not drilled because, if we do, we will have a small return formation of double ceiling bearish implications. Figure that would take you at least towards 9,250-9,300 points", adds this expert.
"The banks they remain weak, both nationally and Europeanly, and the European banking sector accumulates a fall of 6% in the last two weeks. And without the banks they already know that the Ibex cannot go very far. Therefore, and by way of summary, we remain lateral. With an eye on the support of 9,460 points, although as long as it is not pierced, blood will not reach the river. "
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