The index fell 0.67% this Friday, the least in a Europe marked by notable declines
June 14 () –
The Ibex 35 closed the week with a fall of 3.62%, reaching 10,992.3 points, its worst result since mid-March 2023, when the indicator fell 6% due to the turbulence derived from the bankruptcy of several regional banks in the United States.
The main indicator of the Spanish market has thus moved away strongly due to the pressure of bank values from the maximums reached on June 6 above 11,400 integers – levels that had not previously been seen since 2015 -, although in So far this year the index still has a revaluation of 8.81%. For its part, this Friday the index has subtracted 0.67%.
The week has been conditioned by the results of the European elections held last Sunday and by the latest decision this Wednesday by the Federal Reserve (Fed) to maintain rates in the range of 5.25-5.5% and predict that there will only be one cut in the remainder of the year, according to XTB executive, Joaquín Robles.
“The difficulty in stabilizing inflation continues to cause new delays in the next cuts but, despite this, investors continue to show great optimism driven by the strength of the labor market, consumption and business results,” Robles said.
In that sense, references stood out such as the fall in US inflation in May, both in general and underlying rates (they are still above 3%, while the Fed’s objective is 2%), although this optimism investor was diluted when the Fed reduced its expectations to a single rate cut for this year compared to the three movements predicted last March.
Continuing in the wake of the central banks, this Friday the Bank of Japan (BoJ) has decided to maintain the short-term reference rate in a range of 0% to 0.1%, without changes compared to its previous meeting and delaying thus the expected tightening of the Japanese country’s monetary policy, although the entity has announced that it is preparing to reduce the amount of its bond purchase program.
Back in the framework of Europe, the week has been marked by the result of the European elections, in which the advance of the far-right parties caused the “surprising decision” of Emmanuel Macron to announce an advance of the parliamentary elections in France, according to Robles.
Precisely, there have been very considerable declines in Europe during the week: Paris has fallen by 6.23%; Milan 5.76%; Frankfurt 2.99% and London 1.19%.
At the business level, banking has fallen sharply following the rise in debt spreads after the European elections; Likewise, the increase in uncertainty accelerated the collection of profits in a sector that has obtained large revaluations with the delay of interest rate cuts.
Going into the details of the Spanish selective, Naturgy has been the most penalized value after the movement of Taqa, which finally will not carry out a takeover bid due to not reaching an agreement in the negotiations with Criteria, CVC and GIP.
Thus, in the weekly evolution of the Ibex 35, the losses of components such as Naturgy (-15%), Banco Sabadell (-9.32%, which has returned to levels prior to BBVA’s interest), BBVA (- 8.83%), Banco Santander (-7.51%) and Caixabank (-7.32%). The corrections of Telefónica (-6.12%), Unicaja (-5.11%), Bankinter (-4.72%) and Repsol (-1.99%) also stood out.
On the other hand, only five stocks have closed the week with gains: Solaria (+8.84%, driven by rumors of possible purchasing interest from the renewable group), Ferrovial (+1.33%), Endesa ( +1%), Inditex (+0.63%) and Redeia (+0.47%).
In other geographies, it is worth noting that Apple has once again become the most valuable company in the world after announcing a collaboration agreement with Chat GPT on its next operating system, which will thus include Artificial Intelligence (AI), a field in which company seemed to fall behind its competitors. Linked to this, and against Europe, Wall Street indices register advances in the week.
In the raw materials market, the price of a barrel of Brent quality oil, a reference for the Old Continent, rose 3.9% in the week, to 82.72 dollars, while Texas stood at 78. $58, 4% more.
In the foreign exchange market, the price of the euro against the dollar falls 1% in the week, to 1.0684 ‘greenbacks’, returning to the lows of the beginning of May due to the divergence between the ECB – which cut rates last week – and the Fed.
In the debt market, the interest required on the 10-year Spanish bond closed at 3.133% after subtracting two tenths in the week, with the risk premium (the differential with the German bond) at 93 points.
The troy ounce of gold rose 1.5% in the week, to $2,330, while bitcoin lost 5.75%, to $65,000.
KEYS FOR NEXT WEEK
Next week will continue to be dominated by economic references and speculation about the next decisions of central banks, according to Robles.
In Europe, the CPI data corresponding to the month of May and the PMI data for manufacturing and services stand out. A new rise in inflation is expected to 2.9%, which could delay the ECB’s next move.
In the United Kingdom there is a rate decision, although no movement is expected until the last quarter of the year, while in the United States retail sales and unemployment benefit applications stand out.
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