The Ibex 35 advances 2% in the week and reaches 11,200 points

12 Jul. () –

The Ibex 35 has gained 2.06% this week, reaching 11,200 points, a level it had lost in mid-June. During the session, the Madrid index gained 0.72%.

XTB analyst Joaquín Robles points out that the index has recorded its second consecutive positive week, driven by the prospect of interest rate cuts.

“In the US, pressure is mounting on the Federal Reserve after the latest data showed a weakening labour market and a slowdown in inflation. Following the CPI data, markets were highly volatile as investors moved away from the ‘Magnificent Seven’ (Apple, Microsoft, Alphabet, Amazon, Meta, Nvidia and Tesla) in favour of smaller stocks and housing-related companies, which could benefit more from the cuts,” explains the analyst.

The US CPI data for June slowed more than expected, falling to 3%, the lowest level since mid-2021. Although still far from the Fed’s target, the market is already pricing in two cuts by 2024 and gives a 70% chance that the first will be at the September meeting.

“In his semi-annual appearance before Congress and the Senate, Jerome Powell [el presidente de la Fed] He reiterated that he wants more evidence to begin the process of monetary easing, but emphasized that it is not necessary for the CPI to reach 2%,” said Robles.

Next week will be marked by the ECB meeting, economic data and corporate results. XTB does not expect any changes from the European body, but believes that it could bring forward its plans for the final part of the year in terms of monetary policy.

Among the most relevant publications to be released next week, Robles highlights the GDP for the second quarter in China, retail sales in the United States and the final inflation data for the Eurozone. Regarding the companies that will publish their accounts, the most notable are Goldman Sachs, Bank of America, ASML, Netflix and American Express. In Spain, only Bankinter will present its results.

In this context, the Ibex 35 closed at 11,250.6 points, with ArcelorMittal as the highest gainer, gaining 2.71%. It was followed by Rovi (+2.49%), Bankinter (+2.48%), Fluidra (+2.15%), Inditex (+1.74%), Amadeus (+1.54%) and Santander (+1.04%). Only Grifols (-1.91%), IAG (-1.85%), Sacyr (-1.22%), Redeia (-0.60%), Acciona Energía (-0.36%) and Telefónica (-0.22%) were in the red.

In fact, Robles highlights Grifols in his commentary, a company that has confirmed that the Grifols family and the Brookfield fund are studying a takeover bid. He also points out that IAG has reached annual highs after several recommendation upgrades and the news that Brussels has accelerated the process to approve the purchase of Air Europa.

The rest of the European indices also registered increases on Friday, with Paris gaining 1.27%, followed by Frankfurt, which rose 1.15%. Milan (+0.76%) and London (+0.36%) followed.

The price of a barrel of Brent crude oil, the benchmark for the Old Continent, fell by 0.05% at the close of the session in Europe, to 85.3 dollars, while Texas crude was at 82.7 dollars, 0.12% higher.

On the currency market, the euro rose 0.3% against the dollar to 1.0901 euros, while on the debt market the interest rate on 10-year Spanish bonds stood at 3.255%, after gaining almost three basis points, with the risk premium over German bonds at 76.7 points.