The Ibex 35 reaches 8,400 points and adds six consecutive weeks of promotions


The IBEX 35 It gave a final change at 8,416.60 points, an increase of 0.34%, and thus added six sessions and six consecutive weeks to the upside. The main indicator of Spanish Stock Exchange This Friday had no macroeconomic or business benchmarks to focus on this session in both Europe and the United States, except for the GDP of Germany. Thursday did not have the reference of Wall Street which closed for Thanksgiving and was only open half term today for the black friday. The Ibex 35 traded within a tight margin throughout the session.

Germany’s latest Q3 GDP surprised on the upside as quarter-on-quarter growth came in at 0.4%, up from 0.3% at the start, so year-on-year, it improved to 1.2% from 1.1% previously. The new record does not imply a change in the outlook for the economy of Europe’s economic engine and the rest of the region. Most analysts, managers and investment entities agree that this quarter will be the start of the recession in Europe.

Stocks were able to overcome throughout the week the record escalation of positive coronavirus cases in China that imply new mobility restrictions and lockdowns that worsen the country’s growth prospects. Investors were also confronted with the minutes of the last meetings of the Federal Free Market Committee (FOMC) of the Federal Reserve (fed) of United States and some government council from European Central Bank (ECB).

The common view of the Fed and the ECB regarding the need to continue to raise interest rates sharply at a pace of 75 basis points seems to be coming to an end. The Fed’s minutes show that the agency could halt the current strategy at the last meeting of this year and raise rates by 50 basis points, after four consecutive increases of 75 basis points.

The ECB would continue to repeat this hike as it was extremely concerned about inflation, which is still at historic highs. Governing Council minutes reveal that they will pursue monetary normalization even in a recession, as long as it is moderate. They would only ease off in the face of a long, deep recession.

Back to the Ibex 35, the highest increases were recorded Bank Santander1.72%; Repsol1.49%, and Bank Sabadell, by 1.2%. The biggest falls were DHW2.32%; Rovi1.74%, and Endesaof 1.51%.

The euro presents itself as the big beneficiary of this divergence, which investors anticipated last month when the euro appreciated by more than 8% against the dollar since September lows, more than 5.5% in the last 30 days alone. The single currency was practically stable at the close of European stock exchanges, at 1,039 dollar units. The pound to the same to 1.2 dollars.

The sovereign debt yields rose sharply at the same time. The required yield for the Spanish 10-year bond was 2.95% with a risk premium of 98 basis points. The German ‘bund’ settled at 1.97% and the interest rate on the US 10-year bond fell to 3.72%.

Oil was trading without significant changes at the close of the Ibex 35. The type barrel Brant, that of the main international relevance, was paid at 85 dollars and the type west texas, reference in the United States, it was exchanged for 77 dollars. an ounce of requested it was $1,750. In the crypto market, the bitcoins it was less than $16,500.


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