Class Economy Premium: SPAIN: The Ibex: fall a further 4% or rise by 17%?

Thursday, February 11, 2016

SPAIN: The Ibex: fall a further 4% or rise by 17%? – EntornoInteligente

Cinco Dias / lurches into a violently Ibex 35 moves upward and downward in the midst of a market storm. If selective out a boat, experts recommend lower the sails to weather the storm, but as market benchmark index of the Spanish stock, the best protection is to continue to close the technical aspect and try to predict movements.

” the loss of the October lows of 2014, gives a lot of weakness to our index, and that level was relevant last minimum bullish trend that led the Ibex 35 from 6,000 to 12,000 points, “said Marc Artés, counselor Intraday Trading delegate. “When that value is lost, the search areas of significant price support. In this case, the area of the 7,500″ qualifies the expert.

But the r ebote yesterday also gave wings to the positive to think that there is a real possibility that the stock storm abates and let the Ibex 35 in the vicinity of the island bullish treasure. “It is a clear downward trend. To speak solid rebound current rises would be kept for several days to break up,” said Carlos Hernandez, an analyst at XTB.

And to rebound continues, analysts point to the need for a nod from the Federal Reserve in the form of containment in the rise in interest rates expected by 2016. “If the US decides to postpone the rate hike, investors interpret this message as a gesture of support and the Spanish index could climb to 9,200 points, “says Miguel Paz, an analyst at Heritage Unicorp. But Hernandez calm tempers, “now the trend is clearly bearish Before talking about a rebound from entity to return the 10,000 Ibex points, it would be essential to consolidate 9,200, really difficult today.”

what happened in recent sessions, both the falls and rallies, not due to specific reasons “but rather psychological components,” says Ivan San Felix, Renta 4. the expert notes that the market “is very sensitive to news “the rebound from yesterday does not mean a turnaround in a well environment that are increasingly eco voices point to the possibility of a new recession. In this environment, volatility and nervousness seizes investors, resulting in strong sessions seizure.

While some see China and falling oil major threat, others as Peace believe that the most important risk has a double vertiente.La first one is the one that has to do with the behavior of the Federal Reserve. Unicorp Heritage analyst believes that the key Fed President transmits to investors the idea that the tightening of monetary policy may be postponed. However, the message launched by Janet Yellen to the House of Representatives confirms the intention to continue with the rising cost of borrowing despite the worsening financial conditions. Of course, the rate hike will be “gradual”. Investors initially the news enthusiastically taken, but soon after sales again make an appearance. Many people believe that the Fed should be calm in the process of rising rates because their consequences are felt not only in the US but also in other economies in such an interconnected world like today.

Meanwhile, Virginia Perez, head of equities Tressis believes the appearance Yellen yesterday confirmed that despite the doubts of the last quarter, the fundamentals of the US economy remain sound.

the second aspect that disturbs peace is referred to the financial system. In recent sessions to questions from Italian banks they have joined the alarms from a possible default by the oil companies. This has dragged the European banking sector to trade at discounts to book value of 48%, which has not happened since 2009. Again Pérez clarifies that, while it is true that the energy sector does not cross its best, exposure banking these companies has nothing to do with what happened for example during the housing bubble. “This is smaller and much more limited,” reiterates Pérez.Además, the expert notes that the financial situation of the companies is now very different thanks to the efforts of deleveraging

SPAIN. The Ibex : you will fall a further 4% or rise by 17%

Information Five? Dias

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