The IBEX 35 lags behind the major European indices

El IBEX 35 cae a la cola de los grandes índices europeos

The IBEX 35 fell 0.87% this Monday, dragged down by big banks and stocks like Telefónica, Repsol, Inditex and Iberdrola in a day when it suffered the biggest drop in the rest of the European markets, which Investors are worried about Pedro Sánchez’s populist tendencies and the legal uncertainty his decisions are generating among investors to try to turn the election polls around. In Europe, this 0.87% drop in the Spanish market collides directly with Milan, which is up 0.11%, and with the slight losses suffered by the rest of the stock markets: Paris is down 0.18%, Frankfurt 0, 03% lost. ; and London 0.13%.

The main market index, the IBEX 35, started August down 71.1 points, or 0.87%, and closed at 8,085.1 points, taking year-to-date losses to 7.21%.

As Asian markets were upbeat (Tokyo, 0.65%; Hong Kong, 0.05%; Shanghai, 0.21%), the session started with gains, despite the final month’s manufacturing activity data from S&P Global showing a decline in Spain showed and in the euro zone.

After midday, however, the IBEX recorded losses.

In the euro zone, manufacturing has marked a minimum for more than 20 months (overall, the final data of the S&P Global PMI index in July has shrunk to 49.8 points from 52.1) and activity in major economies like Germany, France has slacked , Italy and Spain.

This is the largest fall in production since the lockdowns at the start of the pandemic in spring 2020 and is due to the impact of interest rate hikes to combat inflation.

In the US, the final data from the same index also marked the minimum in two years, but it still shows no contraction in activity.

The market decline in Spain comes after some intense weeks on the markets due to the release of the results of the first half of the big companies, both Spanish and foreign, which pushed the main stock market indices higher.

In this Monday’s session, the declines in the main banks stand out (Santander, 1.93% and BBVA, 1.17%) as well as other highly traded securities such as Telefónica, 2.62%, Repsol, 2.27%; or Iberdrola, 0.1%.

Inditex, the largest capitalization company on the stock exchange, is up 0.76% but has seen much smaller trading volumes than those above.

Solaria led the IBEX’s decline, falling 8.01%, followed by Grifols (5.34%), which continues to be punished by investors after the results released last week

With just eight positive companies, Bankinter comes out on top, up 1.77%, ahead of the aforementioned Inditex and Amadeus (0.42%).

Shortly after the market closed, Brent oil, the benchmark in Europe, fell more than 9% to trade below $100 a barrel for the first time in two weeks, and the euro was trading at $1,027.

On the debt side, the 10-year bond yield fell 5.7 basis points to close at 1.849%, the lowest since late April, and the risk premium was reduced to 107 basis points.

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