The Ibex 35 cuts almost 2% with Telefónica regardless of the falls
After falling almost 2% on Thursday, the IBEX 35 closed the session with a decrease of 0.46%, to 8,966.20 points. “The Ibex 35 index begins to turn strongly to the strictest short term, while the financial sector to which we alluded last week, is unable to break with primary or long-term resistance guarantees, given the accumulation of (1) reduced volume and (2) accumulated overbought ”, explains José Antonio González, Investment Strategies analyst.
“We are dressed in bearskin in the short term with a first objective located in the 8,740 / 8,691 area and a second objective in the 8,467 / 8,426 area,” he adds.
Solaria leads the rises of the Ibex 35 today, with an advance of 1.94%, ahead of Endesa and REE, which gained 1.58% and 0.66%, respectively.
Conversely, ACS heads the falls of the Ibex 35 today by losing 2.53% with attention to their results. Next, Melia cut 1.86% and Repsol, 1.60%, affected by the falls in oil prices.
The Ibex 35 today manages to reduce the falls with the rebound recorded by the main Wall Street indices. In the domestic market, the session was marked by Telefónica’s results.
Telefónica falls after results
Telefónica increased its profit by 118% during the first quarter of this year compared to the same period of the previous year, to 886 million euros. In this way, the company chaired by Álvarez-Pallete comfortably exceeds the forecasts that the market used for its accounts. A net profit of 547 million was expected.
Behind the momentum of the company’s figures is greater efficiency in management and better exchange rates compared to the end of 2020, although these maintained a “notable” impact on the accounts, as did the coronavirus.
After being the only value of the Ibex 35 to register rises most of the morning, Telefónica shares ended Thursday with a 0.46% decline.
Rises of the Ibex 35 with the rebound of Wall Street
Yesterday the Dow Jones, the S&P 500 and the Nasdaq closed the day with sharp falls, after knowing that, in interannual terms, the US CPI rose 4.2% in the fourth month of the year, well above the 3.6% anticipated; while core inflation increased 3% in the last 12 months, also much more than the 2.3% forecast. This is the highest underlying CPI rate since 1996.
However, today the three main indicators of the New York Stock Exchange rise, in the case of the Dow Jones and the Nasdaq, above 1% at the close of the European stock markets.
If the inflation data for April was known yesterday, today the US Department of Labor reported that the producer price index (PPI) for final demand from the United States it rose 0.6% in April, also above expectations.
However, the year-on-year PPI rose 6.2%, following a 4.2% increase in March, compared to market forecasts, which expected the year-on-year index to stand at 5.9% in April.
The Department of Labor also reported today that The number of people who applied for state unemployment benefits in the United States last week stood at 553,000, higher than expected (490,000).
The moving average of new applications for the last four weeks, which is considered a more reliable indication of trends in the labor market as it reduces volatility spikes, fell to 611,750.
In the Continuous Market, the biggest rise is that of Grenergy, which rose by 5.52%; while the greatest decrease is that of Tubacex, which lost 5.40%.
Grenergy’s uploads coincide with a report from Barclays in which they recommend overweight the shares of the renewable company, with a target price of 16.70 euros, which represents a potential of 85%.
Spain’s risk premium rises to 70.15 points, while the interest on the 10-year Spanish bond stands at 0.588%.
The Spanish economy is expected to recover in the second half after a slow start in 2021, and it could grow more than expected next year thanks to the delayed boost from EU recovery funds, the Bank of Spain’s chief economist, Óscar Arce, told reporters.
In its latest economic outlook for March, the BoE expected gross domestic product (GDP), which last year plummeted 10.8% Due to the COVID-19 pandemic, it will expand by 6% in its central scenario this year and 5.3% in 2022. According to the institution, the economic recovery of Spain also depends on the progress of the vaccination campaign against COVID -19, as well as the application of reforms in the labor market and the pension system, and private consumption.
For its part, the European Commission raised its growth forecast for Spanish GDP in both 2021 and 2022 up to 5.9% and 6.8%, respectively, but he also believes that unemployment will not fall this year despite the rebound forecast for the second half of 2021 and, in fact, will rise two tenths to reach 15.7 % before starting its decline in the next fiscal year. The deficit will fall to 7.6% and the debt will remain at 120% this year.
European markets opened the session with clear losses following the path of Asia, after yesterday’s sharp falls on Wall Street, after the alarming rise in inflation that sent bond yields up. However, the stock markets of the old continent managed to close on Thursday with a majority of gains. The Dax rises 0.33%, the Cac 40, 0.14%; the FTSE Mib, 0.14%; while the FTSE 100 fell 0.59%. The Euro Stoxx 50 appreciates 0.13%.
The euro yields against the dollar and it is exchanged at 1.20 greenbacks.
Oil and bitcoin crashes
In the raw materials market oil prices fall by about 3% before the worsening of the pandemic in India and after Colonial Pipeline has resumed its operations. The benchmark Brent oil in Europe fell 2.76% to $ 67.41 per barrel, while the US West Texas lost 3.09% to $ 64.04.
Black gold prices had reached eight-week highs following IEA and OPEC forecasts from a rebound in global demand later in the year. If the losses continue.
For its part, bitcoin falls just over 10%, hovering below $ 50,000, after Tesla decided to suspend the use of the cryptocurrency to buy its vehicles due to the impact it has on the weather.
Tesla’s decision comes after the electric vehicle manufacturer decided in February to buy 1.5 billion in the cryptocurrency and report that it would accept it as payment for cars, generating an approximate 20% increase in the digital currency.