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The Ibex 35 closes the best month in its history with a rise of 25.2% in November

Vaccines against Covid-19 have not yet reached the population but they have taken control of the markets. Its effectiveness in the expectations of investors and in the stock markets is a reality and just look at the Ibex 35 to check. The selective Spanish, which until a few weeks ago was the worst European index far behind the rest, has closed November with the highest monthly increase in its history: 25.18% which has allowed it to exceed the level of 8,000 points (8,076).

The advances that have been made in recent weeks with respect to the vaccines from Pfizer, Moderna or AstraZeneca have returned optimism to the main markets around the world and Spain has been one of the most benefited. “Although the coming months will continue to be conditioned by partial stops in economic activity, the distribution of vaccines” could mark a turning point from the second half of 2021, “explains the analyst of XTB Joaquín Robles, to the Efe agency.

So far this year, the Ibex 35 continues to drag losses close to 16%, however, the change in mood is clear and extends to the sectors that until now had been hit the hardest by the investors. The banks, tourism-related businesses and oil companies such as Repsol have recovered in the last sessions a good part of the accumulated falls since the outbreak of the pandemic, and this despite the fact that the day this Monday has not been positive neither for those companies in particular, nor for the Madrid square, in general.

The selective has left 1.39% with Siemens Gamesa (+ 3.71%), Solaria (+ 3.53%), Cellnex (+ 2.8%), Acciona (+ 2.5%) and Mapfre ( + 1.77%) leading the way, compared to the falls of Acerinox (-6.84%), Sabadell (-6.36%), Repsol (-5.04%) or Aena (-5.01%) .

Perspectives

The month began with the unknown about the results in the US elections and although initial fears brought the red to the bags for a few hours, Biden’s victory soon turned the situation around. The markets interpret that the arrival of the Democrat to the White House will reduce trade tensions with China and Europe and that it will accelerate the next package of fiscal aid in the US.

The main doubt, however, remains, since the coronavirus infections have not stopped and it is not known how long the restrictions will continue to try to stop them.

However, the risks that until a few weeks ago weighed down the markets now seem to be on the downside, as pointed out Diego Fernández Elices, General Director of Investments of A&G Banca Privada, in the presentation of the firm’s prospects for 2021. “The economic cycle is in the recovery phase. We are going into an upward but contained cycle, less intense, in which once certain fears pass we will begin to think, as always , in business profits, “he said.

Regarding Spain, Fernández Elices has shown certain reservations, although he assures that the firm is closely following certain sectors and stocks whose attractiveness has increased in these days. “Among them the infrastructures, some hotels and also some banks”, he assured.

From XTB they point out that during the month of December it is expected that both the European Central Bank (ECB), such as the Federal Reserve, reiterate your monetary policy and even increase your current purchasing programs. Regarding governments, it is expected that during the next few weeks the Democrats and Republicans will agree on a new stimulus package and that in Europe it will be possible to clarify when it will begin to receive part of the aid from the European reconstruction plan.

‘Red’ in Europe

The rest of the European stock exchanges also closed the first session of the week in red, with falls of 1.09% in London, 1.42% in Paris, 0.33% in Frankfurt and 1.3% in Milan.

A barrel of West Texas Intermediate (WTI) oil, the benchmark for the United States, is trading at $ 44.68, while Brent crude, the benchmark for Europe, stands at $ 47.45.

For its part, the Spanish risk premium stands at 65 basis points, with the bond yielding at 0.079%, while the price of the euro against the dollar stands at 1.1949 green bills.

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