The Ibex 35 falls 2.46% and moves away from highs in the week of Trump and the Federal Reserve (Fed)

MADRID 8 Nov. () –

The Ibex 35, the main indicator of the Spanish market, closed the week with a cumulative fall of 2.46%, reaching 11,551.6 points, in a period marked by the resounding victory of Donald Trump in the United States presidential elections and the new rate cut by the Federal Reserve (Fed).

According to market data consulted by Europa Press, this week’s significant decline has caused the national selective to move decisively away from the annual maximums, located around 12,000 integers. Friday’s session concluded with a slight decrease of 0.16%.

The week has been especially conditioned by Wednesday’s session, the day of Trump’s electoral victory, in which the Spanish index fell 2.9% in its worst session since the banking crisis of March 2023.

In that sense, market analyst Manuel Pinto has described the week as “historic”, while Trump’s new mandate has allowed Wall Street to rise to new all-time highs.

A different case is that of the Old Continent, with all the reference indices in ‘red’, while, focusing on Spain, Pinto has commented that the falls are explained by the corrections of the banks, which suffer the consequences that Trump’s protectionist policies could affect the European economy, as well as the ECB’s rate cuts to try to compensate for this lack of growth.

“In addition, the large entities in the sector add the devaluation of emerging currencies [como factor bajista]”, he added in reference to firms such as BBVA.

Regarding the presentation of business results, Pinto differentiates between winners and losers: in the case of Telefónica, the devaluation of currencies, high competition and litigation in Peru have generated a collapse in its profits. […] Regarding Rovi, the poor prospects for the coming months have not been well received by investors and its shares fell by double digits on the day of the presentation.”

On the winning side, he mentioned IAG and Arcelormittal, since the former managed to improve its margin thanks to the reduction in fuel prices and operational efficiencies, while in the latter sales were better than expected. expected and, together with Acerinox, could take advantage of the new environment that opens with Trump’s victory over the protectionist policies of tariffs on metals from China.

Within the central banks section, the Fed decided to lower interest rates by 25 basis points, to a target range of 4.50% to 4.75%; Furthermore, the president of the central bank, Jerome Powell, has detailed that he has no intention of resigning before the arrival of Donald Trump and that, in any case, he cannot be dismissed.

The Bank of England has also cut rates by a quarter point, leaving them at 4.75%.

Given this situation, the best values ​​of the Ibex 35 in the week have been IAG (+10.77%); Acerinox (+10.74%); Grifols (+6.66%) and ArcelorMittal (+6.17%); On the other hand, the worst components in the weekly count have been Rovi (-19.15%); Puig (-5.84%); Acciona (-5.48%); Naturgy (-4.84%); Banco Sabadell (-4.77%); Fluidra (-4.77%) and Iberdrola (-4.45%).

Regarding the large European squares, Frankfurt has subtracted 0.21% in the week; London 0.3%; Paris 0.95% and Milan 2.48%. On the contrary, Wall Street indices recorded accumulated advances in the week of 5%.

“In Europe the situation is worrying due to the upcoming tariffs,” commented Pinto, and then cited the luxury and automobile sectors as the most affected in the common area, while defense companies are among the most positive. .

In the area of ​​raw materials, a barrel of Brent stood at 73.7 dollars at the close of this Friday, 0.8% more in the week, while West Texas Intermediate (WTI) reached 70.26 dollars, 1.1% more.

Regarding debt, the yield on the Spanish bond maturing in 10 years closed at 3.102%, with the risk premium compared to the German bond at 74 points.

In the currency market, the euro depreciated 1.25% in the week against the dollar due to the new rate outlook differential between the European Central Bank (ECB) and the Fed, until crossing at an exchange rate of 1 .07 ‘greenbacks’ for each unit of the community currency.

For its part, the troy ounce of gold fell 1.85% since last Friday and is trading at around 2,700 dollars, while bitcoin has risen 10% and has settled at the level of 76,000 dollars, new all-time highs.