The Ibex 35 wakes up and catapults a new all-time high from 16,000 points
The Spanish stock market adds and continues from all-time highs. He Ibex 35 maintains the upward trend and advances from the 16,000 points that it reached on Monday for the first time since 2007. Specifically, in the early stages of The session has exceeded 16,050 points which represents a record in the 33 years of the index’s existence. This upward behavior occurs after the corrective in Japan in which the Nikkei lost 0.58%, in contrast to the green of Wall Streetwhich catapulted new highs.
At the end of yesterday’s session, the Dow Jones rose 0.71%, the S&P 500 an advance of 1.23% was recorded and the Nasdaq gained 1.86%. It also reached a record Russel 2000which groups together small capitalization companies, which has been interpreted as another sign of potential deal between the US and China. The relief after the preliminary agreement between USA and China should materialize this Thursday with the meeting between Donald Trump and Xi Jinping, without ruling out that it does not meet expectations, as well as the upcoming meetings of the Federal Reserve (Fed) and the European Central Bank (ECB) mark the day for this Tuesday.
The green of the Spanish parquet contrasts with the mixed tone of the Old Continent. In this sense, the CAC 40 French dawns with a slight decline of 0.26%, the dax German declines 0.4%, the FTSE MIB Italian corrects 0.17% and the FTSE 100 London starts on a draw (+0.05%). Back in Spain, the selective is boosted by large values such as Iberdrola, which rebounded more than 2.2% after the presentation of results.
The Madrid selective rebounds in the big week of business results, with special focus on the banking sector. Following the publication of Bankinter’s accounts, Banco Santander will take over next Wednesday. The strength of banking margins, which is compensating for the lower interest margin with greater growth in commissions, serves as a catalyst to maintain valuations.
This Wednesday it will be the turn of the Federal Reserve, on which the market discounts a drop in interest rates of 25 basis points. The second cut in the price of money undertaken by the US central bank would take place in a context marked by the closure of the Administration, which has delayed the publication of a large part of the official economic statistics, including the unemployment rate.
On the other side of the Atlantic is the European Central Bank (ECB) which, barring surprises, will maintain the price of money at 2% in what is expected to be the third consecutive pause undertaken by the Frankfurt-based organization. In this context, the big question for the Ibex 35 is how far the ‘rally’ will last. The director of Miraltabank Markets, Ignacio Albizuri, believes that the Ibex has gas left to even reach 16,400 points, although he warns that any movement in trade or the Fed can trigger uncertainty.
Joaquin Robles, analyst at Banco Big, explains to ‘La Información Económica’ that one of the anomalies of the Spanish and Italian stock market is the discount of the stock market capitalization of dividends, which is why it has taken longer to recover the highs of 2008 compared to its comparable peers. “The results serve to justify the evaluationsbut I’m not sure if he will be able to maintain them in the short term.”
Regarding raw materials, the price of Brentthe reference in Europe, fell 1.3% in European markets and stood at $64, while the price of West Texas Intermediate, the reference for the United States, falls 1.39%, to $60.46. Regarding currencies, the price stands at 1.1653 ‘greenbacks’ while the yield on the ten-year Spanish bond falls 0.1%, to 3.1%.
