After the party At the beginning of December, this week the European stock markets have taken it more calmly in a few days in which the attention fell on the meeting of the European Central Bank (ECB). Analysts assumed that a new rate cut would come, and the last meeting of the year has left equities without major changes. The stock markets of the Old Continent close the weekly calculation practically flat. On the other hand, the national reference, the Ibex 35has been dragged by its most valuable firm: the Inditex group, after the presentation of third quarter results that disappointed the market by not meeting forecasts. The drop in the fashion brand’s shares has reached 10%, which has led the Spanish stock market to lose 2% in the weekly balance, up to 11,810 points.
The ECB’s latest rate cut was already more than clear news for the markets, which the organization confirmed this Thursday. With this fourth cut to end the year, the eurozone deposit rate remains at 3%, 100 basis points below the figure at the beginning of the year. The outlook for monetary policy in 2025 is more uncertain. While the market is betting on five more cuts, which leave the deposit rate at 2%several members of the European banking entity show a more hawkishsince they refuse such drastic changes, considering that The fight against inflation is not yet over.
From Bankinter they point out that the president of the central bank, Christine Lagarde, recognized in her statements that “the disinflation process is well underway, although wage growth is still reflecting the upward adjustment due to past increases in energy prices. “. Even so, the analysis firm considers that “monetary policy remains restrictive and the projected recovery depends on the increase in real incomes to reactivate consumption and investment.” After this appointment from the ECB, the one from the United States Federal Reserve follows next week, in which the market also expects another cut.
Investors were especially cautious in the days prior to Thursday’s session, which has left the balance of the reference in Europe, the EuroStoxx 50, practically in a draw and closing at 4,976 points, despite the slight increases of some stock market sessions. This same behavior is replicated by the French Cac 40, which hardly sees changes in its weekly price. There are certain indices that have achieved a somewhat greater advance, since the Milan stock market rises by 0.6% weekly, while the German index, the Dax 40, has recorded an increase of 0.3%.
Inditex drags the Ibex
In contrast, the Ibex 35 closes with a decrease of 2.26%, as mentioned previously, which has weakened the monthly increase recorded by the Spanish selective, which remains around 0.1%. The jewel of the crownInditex, has weighed down the price of the benchmark index, along with the declines of Enagás and Acciona Energía, which lost 6% and 5%, respectively. During the week, Inditex lost 10%, the worst weekly drop for the fashion brand since September 2022, when it closed with a drop of 10.6%. even though it has broken record after record this year.
Even in this latest presentation of results, the highest net profit in its history stands out: 1.6 billion euros in just one quarter. Despite these being such satisfactory figures for the company of Galician origin, these have been below the expectations of analysts, who estimated the group’s profits at 1.7 billion. Nevertheless, analysts have slightly improved their assessments of the brand given the solidity of the Spanish fashion company.
This week, only nine Ibex firms manage to close with their price positive, led by Grifols, which – as a counterbalance – rises 10.7% after having made a new issue to refinance its debt this Wednesday, which has motivated investor sentiment. in this firm. The pharmaceutical company, however, has a fall of 39% in 2024. IAG and BBVA enter the top 3 of increases, with an increase of 3.5% and 2%, respectively.
On the other side of the Atlantic, the price is mixed at the European close. While the Dow Jones and the S&P 500 lose 1.6% and 0.8%, respectively, the Nasdaq 100 manages to rise 0.8%, thanks to the increases at the beginning of the technology week, but which found break this Thursday. One of the consequences of the rate cut is that it has strengthened the dollar against the euro, which closed with a drop to 1.049 dollars per European currency.
While gold ends the week at the same level as the beginning, around $2,660 per ounce, after rising to $2,718 in the middle of the week. The barrel of Brent is closing at 73.97, levels not seen since the end of November.
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