2023-10-24 19:28:10
The Spanish stock market is unable to contain its bearish streak, adding five consecutive sessions of falls in which the Ibex-35 has dropped 3.47%.
The selective was the only indicator of the majors in Europe that closed yesterday in the red, hit by the stock market setback suffered by banks and energy companies after learning of the Government pact reached between PSOE and Sumar, which, among other things, is considering the possibility of extending the tax – initially temporary – on these companies.
Losses exceeded 5% in Banco Sabadell, were around 3% in CaixaBank and Unicaja and 2.7% in Bankinter. The punishment also reached Endesa and Repsol, with losses of around 2% at closing.
Another of the most affected values was Aena, which fell 2.6% after learning that the pact includes a point to reduce domestic flights that present a train alternative in less than 2.5 hours, except for international connections.
“The insecurity that this type of decision generates among investors can leave these securities at a clear disadvantage compared to others in the same sector in Europe,” indicate financial sources. They remember that this was already noticeable in the stock market performance of banks and energy companies when the Government announced the new tax on extraordinary profits, so they do not rule out that the situation will be repeated.
The sector, against
In any case, they consider that the reaction seen yesterday in the market will be contained, especially if these companies convince in the current round of business results.
In a recent financial forum held in Madrid, the main executives of the sector already showed their rejection of the possibility of extending this rate for more years, arguing that banks need capital to operate and that the new figure harmed competition, since it did not does not affect smaller entities or foreign ones. “It is bad for Spain and for the economy,” they say from the sector, which already received the first blow from the National Court a month ago, when the court rejected the appeals filed against a tax with which the Government hopes to raise some 1.7 billion. annually with energy companies and another 1.3 billion with banks.
Pay attention to debt and central banks
The Ibex-35 thus reaches a key week in which financial companies are also very attentive to Thursday’s meeting of the European Central Bank (ECB). The consensus of analysts assumes that there will be a pause in the current cycle of interest rate increases, especially after the release of PMI data that is much weaker than expected and that opens the door to a possible recession in the euro zone. .
The possibility of central banks ‘easing off’ on rate increases has also been reflected in less tension in debt markets. Investors buy bonds again, driving prices up and the required return down (which moves inversely). Thus, the interest rate on the 10-year US bond fell from the 5% it reached on Monday, the highest since 2007. And in Spain, the bond for the same term is also moving away from the feared 4% barrier.
Meanwhile, in the raw materials market, the price of oil is advancing slightly, with a barrel of Brent (the reference in Europe) returning to over $90, while US West Texas is around $85.6.
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