European equities manage to save the week this Friday. In this third week of declines for the Old Continent indices, it has once again first flat the tension between Russia and Ukraine. This Wednesday, Zelensky attacked Russian territory with American and British missiles, after receiving the approval of Joe Biden, and Putin has not hesitated to respond with an attack and has already threatened with a decree that will allow him to use nuclear weapons against his adversaries. Although the escalation of geopolitical tension was in the crosshair for the markets, it has finally not done dent in the weekly balance, while the results of the queen of AI stole the attention of investors globally. In this scenario, the Ibex has managed to close practically flat, with its price at 11,656 points and an increase of 0.18%.
In this way, the Spanish stock market continues to be the most bullish index of the year in the Old Continent, registering 14.5% so far in 2024. All despite the fact that in this Friday’s session the banks put pressure on the index, with falls of more than 4% even in the case of CaixaBank, after the new banking tax was approved, which harms the large companies the most. The sector also suffered the greatest expectations of cuts from the European Central Bank (ECB).
In the weekly count, the Dax is the most bullish and manages to advance 0.5% in these five dayswhich maintains its annual increase at around 14%. For its part, the European reference, the EuroStoxx 50, barely corrected 0.1%, and remains around 4,788 points. The Ecotrader analyst and strategist, Joan Cabrero, highlights that it is important to pay attention to the index to know if the Christmas rally will finally occur, or just the opposite, if “we will face a final stretch of the year and the beginning of 2025 that could dye red,” says the analyst, who explains that “in the worst scenario, we would be in the event of falls between 10 and 15% in the EuroStoxx 50, which would return the main European benchmark to the levels of a year ago.
To see the evolution of this index, it is recommended to look at the critical support of the EuroStoxx 50 Total Return, an index that takes into account the impact of dividends on the price, which points at 10,900 points, of which it remains at 3, 9%. Although, “this same week it marked a minimum at 11,053 points, just 1.3% from that key support. In this context, it would be ideal for the market to threaten to break that level and then execute a reversal, a technical figure that usually marks significant turns, especially if a bullish gap appears in that return“.
In the event that this happens, Cabrero affirms that “we would be faced with an unbeatable opportunity to position ourselves upwards: the risk of buying in that area would be minimal compared to the reward potential“, and Cabrero sees a path ahead of 10% for the coming months if this assumption occurs, and speculates it could be up to 20% ahead.
The French Cac 40 fell 0.2% in the weekly balance, but it has also deepened its annual fall, which is 4.7%. The Italian FTSE Mib is the red lantern of the week, falling 2.3%while, outside the European Union, the British FTSE 100 added 2.4% to its price, boosted by the prospects of Trump as the new US president, which has reactivated investor interest in the United Kingdom.
On the other side of the Atlantic, Nvidia managed to beat market expectations in its results presentation, although investors were concerned about the slowdown in the release of its Blackwell chip. In addition, they considered the increase in expectations for its revenues to be uninspiring, which passed up to $37.5 billion for the fourth and final quarter of the year. It should be noted that one month before the end of the year, there are fewer and fewer catalysts for stock market prices, so the chip producer’s balance sheet had even more. leadership than usual.
Although the traders They initially considered that it was time to sell US equities, finally all the indices closed in positive, led by the Nasdaq 100 at the close of the European session. He technological selective revalues 3% during the week. Meanwhile, the stock market benchmark, the S&P 500, and the industrial index, rose 1.6% and 1.5%, respectively.
The most bullish and bearish
The Ibex values close the week in a mixed way, Logista takes the lead with an increase of 4%, while Inditex and Merlin score 3.4%. In the falls, Solaria is the most bearish, losing almost 13%. Banking has also been greatly affected this week, five of the ten stocks that fell the most are from this sector, but the most affected firm is CaixaBank, which lost 7%. Grifols also loses 5% to Brookfield’s latest offer.
The dollar has strengthened strongly against the euro, at the close of the European session the exchange rate was positioned around $1.04, levels not seen since 2022, while the market waits for parity of both currencies to be reached. Gold advanced to $2,700 per ounce, once again approaching its highs: $2,787. Meanwhile, the barrel of Brent experienced a positive week of increases and reached $75 per barrel of crude oil in the market.
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