2023-11-10 18:23:01
The if hesitate this Friday, November 10, 2023. He Ibex 35 ended this Friday with a cut of 0.36%, to 9,371.70 points, within a framework of collecting previous profits, although with some recovery after previous adjustments. The red numbers stood out in the construction and real estate sector, whose prospects are moderately gray in this environment of high interest rates and prudent demand for homes and offices. Of the 35 Ibex values, 24 ended in the red.
The announcement by the president of the European Central Bank (ECB), Christine Lagarde, that interest rates will not be lowered in the next two quarters predicts economic weakness and also in the equity markets. In the week, the Ibex fell 0.84%, although in the year it rose 13.88%, according to BME data. The announcement of a possible rate hike in the US by the president of the Federal Reserve, Jerome Powell, already in the morning supported the idea that it was better to sell than wait. It is always good to remember that operators and investors follow trends, take advantage of the wave (as in the Radio Futura song) and it is not advisable to persist in convincing yourself if central banks spoil parties. Despite this, some actions on the ‘parquet’ ended in green numbers. Among the large values, Repsol rose 0.85%; Telefónica, 0.41%; Santander, 0.33%. Inditex left 0.67% and BBVA, 0.9%. The red lantern of the session went to Grifols, with a drop of 4.86%.
The Spanish stock market week ended up transmitting a certain perception of exhaustion, between political noise that is difficult to translate into the stock market and indicators that invite more pause than taking indiscriminate buying positions. The axiom of buying going up and selling going down may have been applied this Friday, but it is true that the general trend is made up of multi-trends and it is advisable to look at each action in herself. For those who prefer to diversify through the Ibex reference, the correlation with Wall Street, although not perfect, is still a sideways glance (and fear in the face of so much rise).
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The latest macroeconomic data do not invite optimism in either China or the eurozone. The symptoms of weakness clearly exist if nearby borders are crossed, most of them clients of the Spanish Ibex companies. The remarkable rise on Thursday to exceed 9,400 points invited many this Friday to take profits and rethink objectives. The effect that the period of high rates may be longer than expected is bad news for consumer goods companies, real estate companies or construction companies. Lagarde takes many risks by announcing measures to cool the economy, and that does not leave the markets cold. Equities are encouraged only by projects and get bored and sell cautiously.
* This commentary on the short-term evolution of the stock market aims to combine the data from the session’s balance sheet with the opinions of the writer and other analysts. Variable income is influenced by multiple factors that shape what experts define as a predictable trend, in continuous change and whose analysis must be holistic, global, critical and multidisciplinary. But they are still opinions.
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