The Ibex 35 recovered 19,000 points this Monday and closed at 19,033.3 points, after advancing 0.23% in a session marked by the expectation of central bank decisions and the start of a new round of corporate results.
The market focused, initially, on the meeting of the United States Federal Reserve, which will be held on Wednesday, followed in the following two days by the European Central Bank and the Bank of Japan. That agenda, more than the immediate stock market movements, was the main reference point for investors.
Spanish banking enters a week of accounts
The earnings season starts strong in the domestic market. After the accounts published last week by Bankinter, it will now be the turn of Mapfre, Línea Directa, Banco Santander, BBVA, CaixaBank, Banco Sabadell and Unicaja, as well as Endesa, Redeia, Repsol, Naturgy and Ferrovial.
The session also left a very clear division between winners and punished. Among the biggest increases were Grifols, with a rise of 5.31%; Indra, with 4.14%; IAG, with 3.96%; Solaria, with 3.46%; ACS, with 2.97%; and Unicaja, which added 2.32%.
On the other hand, Telefónica fell 6.41%, followed by Banco Santander, which dropped 3.09%; Cellnex, with a decrease of 2.98%; Mapfre, with 1.82% less; and Naturgy, which retreated 1.80%.
Brazil, geopolitics and macro data condition the tone
The close was also influenced by the result of the elections in Brazil, which penalized companies with exposure to that country, such as Telefónica, Banco Santander and Mapfre. Julius Baer fixed income analyst, Eirini Tsekeridou, warned that after the first round the market had already largely discounted a Bolsonaro victory and that this points to a significant correction in Brazilian assets, with greater volatility due to doubts about fiscal policy.
“Significant correction,” Tsekeridou summarized, although that reading does not clear up the underlying unknown: the ability to form coalitions in a fragmented Congress with a predominantly center-right tendency.
In parallel, the geopolitical front remained tense due to Houthi forces' operations against various targets in Saudi Arabia, including King Khalid International Airport in Riyadh, and several oil pumping stations.
In Spain, the CNMC gave the green light, in the first phase, to Iberdrola's acquisition of Contigo Energía's electricity marketing business in the country, an operation with which the electricity company will add a portfolio of 100,000 customers.
The INE, for its part, reported that home sales rose 3.4% in August, to 49,319 operations, while mortgages constituted on homes increased 2.3%, with 33,841 loans. The agency added that industrial prices soared 18.3% in September, in a rise attributed to the increase in energy prices.
In the rest of Europe, the markets also ended higher: London advanced 0.72%; Paris, 0.82%; Frankfurt, 0.91%; and Milan, 1.29%.
In the commodity markets, the Brent barrel was trading at the European close at 117.33 dollars, while West Texas Intermediate (WTI) stood at 103.01 dollars, with a 0.24% decline.
In fixed income, the Spanish 10-year bond offered a yield of 4.006%, below the 4.039% on Friday, which narrowed the risk premium against the German bond to 63.6 basis points. In currencies, the euro depreciated 0.16% and was exchanged at 1.1184 dollars.