Last week, investors reacted to Donald Trump’s victory in the US presidential election with purchases in the main Wall Street indices, which became the oldest rally bullish trend of the year for major US benchmarks. On the other hand, equities in the Old Continent collapsed due to the negative outlook for European industry, given Trump’s promise of higher tariffs on their products. Although the European references managed to rebound after the declines of the previous week, finally only the Ibex 35 and the Italian FTSE Mib managed to save the weekly price and close in positive territory. The Spanish stock market index increased 0.7% in the weekly calculation and closed at 11,635 points, after having been the most punished after the return of the Republicans to the White House.
It should be noted that this has been an atypical week for the Spanish stock market, having not only one, but two new jumps onto the stock market this week: Inmocemento and Cox.
In the middle of the week, the photograph of the Ibex 35 was completely different, since the index saw its price decline by up to 1.9%. Although, finally, the Spanish index manages to end in positive territory and above 11,138 points, the intermediate support of the stock market indicated by Joan Cabrero, strategist and analyst of ecotrader. Cabrero explains that losing the support of 11,560 and 11,600 points during the election week was “anything but somewhat bullish, and I haven’t tired of repeating it since.
For the analyst, the risk is that “we are witnessing a larger consolidation that could seek 10,900 and 11,000 points in the worst case scenario,” but he recommends “see if the intermediate support of 11,138 points, which are the September lows, manages to stop the fall“. It is around 10,900 and 11,138 points where Cabrero would recommend re-exposing yourself to the Spanish stock market, since “the bullish trend that has been guiding the increases from the lows of 2022 runs through that range.”
On the other hand, the Milan stock market is the most bullish on the continent this last week, approaching the annual rise of the Dax and the Ibex, with a 13% rise. In the last five days, the Italian FTSE Mib appreciates up to 1.8%. For the rest, the price of the European indices close practically flat, affected by the change of mood on Wall Street, on the part of the Dax and the British FTSE 100. The European reference, the EuroStoxx 50falls 0.12% on a weekly basis. Although, he Cac 40 is left behind at the end with a weekly decline of 0.9%. The Paris stock exchange continues trading colored of red at an annual level, and this drop has deepened to 3%.
In the United States, the exhaustion investor took over Wall Street over the course of the week, after incredible increases. And although the declines were slight for the US indices, after the speech by the president of the Federal Reserve, Jerome Powell, the declines in the Big Apple. The main leader of the central bank, who surprised by once again using a tough tone regarding his monetary policy, He highlighted that the evolution of the US economy is being “remarkably good”hence “is not sending any signal that we need to rush to lower rates“.
This has dashed hopes that at the last meeting of the year, set for December 18, the monetary entity makes a new cut. Given this, Wall Street corrects above 1%. At the European close, the S&P 500 leads the declines, falling 1.5% in the weekly count, which leaves the American benchmark trading around 5,880 points, after having managed to overcome the psychological barrier of 6,000 points. The technological index par excellence, the Nasdaq 100, also lost 1.5% in the last five days. For its part, the industrial Dow Jones fell 1%.
The most bullish and bearish of the Ibex
With respect to the securities listed on the Ibex 35, Unicaja leads the index increases by registering 5.2% this last week. The renewables Solaria and Acciona Energía also managed to rise 5%, although they continue in a difficult year for their prices. Meanwhile, Sabadell and Acciona rose 4.1%, respectively. On the other hand, Cellnex leads the red lanterns of this reference, losing 4.2% in recent days. For its part, Rovi falls 3.3%, and Rovi around 3%.
In currencies, the dollar has been strengthened by Trump’s prospects, which has plummeted the exchange rate against the euro, to 1,051 dollars per European currencythe lowest levels of the year and not seen since 2023. Although the euro has managed to advance slightly, the exchange rate closes at $1.057, while the prospect of a possible parity between both currencies strengthens.
In the raw materials market, Brent fell again to $71.8, although it managed to revalue to $72.09 per barrel of crude oil. Gold also plunged 5% mid-week to $2,564 per ounce, despite starting trading above $2,700. Although it recovers, it fails to exceed $2,575.
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