The Ibex 35 knocks on the doors of 8,900 points: ‘sell in may’?

The Ibex 35 wants to consolidate the 8,000 points in a week full of references

The IBEX 35 closed Monday’s session positively, the beginning of a first week of May full of macroeconomic and business references.

“Despite what the central banks have been reiterating in this regard, inflation it has become one of the main factors of concern for investors in Western financial markets, ”said Link Securities analysts.

“In the months of March and April, this variable has started to rebound strongly both in Europe and the US, largely as a consequence of the so-called” base effect. ” In recent weeks, many leading activity indicators have highlighted inflationary pressures in many production chains due to supply failures, something that many companies have corroborated in their results presentations. Therefore, and from now on, investors will pay close attention to the trend of inflation ”, indicate the same experts.

The Ibex 35 consolidates the 8,800 points

Specific, the IBEX 35 today closes the session with a rise of 0.89%, to 8,893.70 points. after publication April manufacturing PMIs in Europe and the US. On Wednesday it will be the turn of the same index referring to the services sector.

The activity of Spanish factories registered in April its highest monthly growth in 21 years, according to the PMI indicator released today, with demand, production and employment increasing as economies around the world gradually reopened after the COVID-19 pandemic.

The IHS Markit Purchasing Managers Index (PMI) for the Spanish manufacturing sector rose to 57.7 points last month from 56.9 in March, the highest reading since December 1999. Figures above the 50.0 mark indicate an expansion in activity.

The IHS Markit Final Purchasing Managers Index (PMI) for the German manufacturing sector it stood at 66.2 points, slightly below the leading reading of 66.4, but still close to the March record reading of 66.6.

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The factories of Europe’s largest economy have been operating during the pandemic almost without seeing their activity altered by the restrictions, and having been accelerated earlier this year by strong demand from the United States and China.

In the euro area as a whole, the index rose to 62.9 points in April from 62.5 in March, This, although it is below the initial estimate of 63.3, is the highest reading since the survey began in June 1997.

This week, the Ibex 35 is not only facing the publication of PMIs. Also, on Friday, and In the US, non-farm employment figures for April will be released. The US economy is expected to have recovered nearly 1 million jobs during that month. On Thursday the Monetary Policy Committee of the Bank of England (BoE) meets. Although no changes are expected in monetary policy, it is possible that the Committee is more optimistic about the performance of the economy and inflation in the United Kingdom.

On the other hand, On the Spanish stock market, almost 40% of the Ibex 35 companies will publish their figures in the next four daysAmong others, Grifols, Pharmamar, Cie Automotive and Endesa, ArcelorMittal, CaixaBank, Fluidra, Acciona, Ferrovial, Amadeus, Cellnex and IAG stand out.

Banco Sabadell leads the increases in the Ibex 35 today with a rebound of 4.47%, ahead of Amadeus and Repsol, which rose 3.42% and 3.03%.

Independent Research experts reduce Repsol’s target price to € 10.40 from the previous € 10.60, with a recommendation to hold.

Seven values ​​of the Ibex 35 today rise more than 2%, including several companies in the tourism sector. In addition to Amadeus, Melia Hotels increased by 2.88%; IAG, 2.85% and Aena, 2.63%.

The executive of the European Union recommended on Monday that foreign citizens fully vaccinated against COVID-19 and those from countries with a good epidemiological situation can travel to the bloc without additional restrictions.

Currently, the European Union allows citizens of seven countries to access its territory on vacation or for other non-essential reasons, and the European Commission’s proposal would expand that list.

“The (European) Commission proposes to allow entry to the EU for non-essential reasons not only to all people who come from countries with a good epidemiological situation, but also to all people who have received the last recommended dose of an authorized vaccine for the EU, “the institution said in a statement.

In contrast, Siemens-Gamesa leads the falls of the Ibex 35 today, with a decrease of 3.89%, when its first quarter results are listed. Next, PharmaMar cuts 3.58% and Banco Santander, further away, 0.58%.

After the close of the session on Friday, the wind turbine manufacturer reported that it recorded a loss of 54 million euros in the first semester of its fiscal year 2021, which means reducing by 84% the ‘red numbers’ of 339 million euros that it suffered in the same period last year due to the impact of Covid-19.

Siemenes Gamesa has decided to lower the range of its sales guides due to delays in project execution. Sales of the wind turbine manufacturer arising from the merger of Gamesa with the Siemens wind power division amounted to 4,631 million euros in the period from October to March, an increase of 10%.

Within the banking sector of the selective of the Spanish stock market, only the entity chaired by Ana Botín closes in red. The rest, although to a lesser extent from Sabadell, opt for profits. Bankinter rises 0.24%; BBVA, 0.12% and Caixabank, 0.64%.

RBC analysts have improved BBVA’s target price to 5.30 euros, from the previous 5.10 euros.

In the Continuous Market, Codere shoots up 42.01%; while the biggest drop is that of DIA, which is down 8.58%.

Codere uploads after its founders, the Martínez Sampedro family, have requested to introduce a new item on the agenda of the shareholders’ meeting to be held on May 11 and that the participants in the takeover of Codere comply with the Spanish Securities Market Law.

To do this, they have requested that the National Securities Market Commission (CNMV) open a file against the funds to force them to submit a forced takeover bid for 9.58 euros per security for the benefit of all the company’s shareholders, which represents a total amount of around 900 million euros.

New session of falls for DIA after revealing last Thursday that it will take its general meeting of shareholders on May 31 the capital increase of up to 1,028 million euros, double the amount initially announced, at an issue price of 0.02 euros for each new share (0.01 euros of par value and 0.01 euros of issue premium for each new share).

The risk premium in Spain is reduced to 66.20 basis points, while the interest of the Spanish 10-year bond yields to 0.456%.

Rises in European stocks with attention to PMIs

The European stock markets close a session higher without great activity, with London, Athens and Dublin closed for local holidays. The Dax rose 0.66%, the Cac 40, 0.61% and the FTSE Mib, 1.15%. The Euro Stoxx 50 advanced 0.64%.

The euro advances against the dollar and it is exchanged for 1,206 greenbacks. The greenback gives ground to the decline in Treasury yields and after mediocre data that weighed on the greenback.

US manufacturing activity grew at a slower pace in April, probably constrained by the scarcity of inputs amid the demand unleashed by the increase in vaccines and fiscal stimuli. Specific, the US manufacturing ISM it fell to 60.7 points in April, from the previous 64.7 points, also remaining below the expected 65 points.

Comments by Luis de Guindos, vice president of the European Central Bank, also supported the euro. The ECB may begin to remove emergency stimulus measures when the pace of coronavirus vaccines reaches a key level and the economy picks up, he told an Italian newspaper.

In the cryptocurrency markets, Ethereum surpassed $ 3,000, setting new all-time highs.

In the commodities market, oil prices turn higher and erase the losses at the beginning of the session. The benchmark Brent oil in Europe rose 1.23%, to 67.68 dollars per barrel, while the US West Texas advanced 1.24%, to 64.38 dollars.