IBEX corrects due to the takeover bid

5月9日

Today morning, the Ascension Day of Christ, the IBEX35 has experienced strong movements due to the news of the hostile takeover bid for Sabadell by BBVA and the possibility of a refusal by the government in view of the destruction of competitiveness in the banking market. Spanish government bonds, as well as Irish bonds, have been drawn. At noon De Guindos and Cipollone will communicate at the ECB regarding this intention to seek interest rates of 2% for next year, perhaps having to adjust for the inflationary risk that is currently a substantial risk. A possible merger in the United States of Europe in the long term, which could begin with its fiscal unification, has also been on the news for weeks.

If we look at the IBEX chart, currently there has been a downward opening with the news of the government and this has moved the index to oversold, so its value has moved to the mean, correcting the rises of the last week. While on the RSI, downward turning signals were given on Tuesday and Wednesday, today Thursday they have been executed returning the index to the downside generating a double top at highs. The most traded price zone in 1 hour is located at 10880 points so it would not be unusual to see the index continue to correct its price downwards. It is also true that the Spanish unemployment data has not been really good and inflation has favored consumer companies and the energy, communication, and banking sector in terms of absolute results, so companies like Telefonica have earned 79% more during this first quarter of the year, while fast food chains like Burger King, in particular the Spanish company have increased their indebtedness, due to the drop in fast food consumption that has also spread to Europe. On the other hand, hotel companies are once again experiencing a growth boom; Meliá will open 30 hotels this year with growth expectations of over 8%. These irregular data mean that the index is likely to move in a range fluctuating between 10825 points and the current highs due to the disparity in its sectors.


Ion Jauregui - AT Analyst




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