- On Friday the index fell 1.09% to 8,622.9 points
- Banking sector continues to be the dead weight
- Federal Reserve chairwoman opens the door for December rate rise
The Ibex 35 ended its third week in a row on the negative side after falling 0.18% this week. Specifically, on Friday the Spanish market fell 1.09% to 8,622.9 points.
- 0,317€
- 0,00%
- 11.595,000
- 0,50%
Despite a week of indecision from the Spanish index, in which it has been oscillating between green and red, it remains fairly stable, not far off 8,700 points. The banking sector is cause for concern, particularly with Banco Popular continuing to be the most doubtful stock on the market for investors. However, it was the second highest riser on Friday, increasing its value by 0.58% to finish on 0.86 euros.
The worst performer of the day however was Mediaset, which registered a fall of 2.88% to finish at 9.60 euros. The second biggest faller was BBVA, which dropped 2.82% to 5.86 euros, followed by ArcelorMittal which finished 1.9% lower to 6.50 euros. Santander also fell sharply with a decline of 1.84%.
On the other side of the spectrum, Melia Hoteles led the advances on Friday after closing the week on 10.80 euros, followed by Tecnicas Ruidas, Banco Popular and Amadeus.
In Madrid's main market index, this week the lookout has been towards Spanish construction firm OHL. On Friday, it closed with a boost of 4.49% to finish on 2.72 euros. However, OHL lost over 17% after disappointing in its results and the downgrading of its rating by Moody's. Bankinter experts lowered their recommendation on Friday for the firm.
European markets also finished red for the week, even though the Portuguese index PSI 20 closed slightly higher (0.9%). The CAC 40 in France fell 0.52%, the FTSE 100 0.28% and the DAX 40 in Germany by 20%. It must be pointed out in Germany that Deutsche Bank completed the sale of its stake in Chinese entity Hua Xia, and its stock price fell 0.4%.
The European Central Bank stimulus doesn't look as if it's going to disappear any time soon. The rumours of an early retreat in bond yields, which provoked abrupt movements in stocks, appear to have gone. Some economists are now working on the premise of Mario Draghi's "Quantitative Easing". The message from the ECB remains the same, nothing more until March.
In the US market, a raise in interest rates looks likely in December, according to the comments from Federal Reserve chairperson Janet Yellen. At the close of European markets, Wall Street was down, but the Nasdaq has hit a historic high of 5,346.80 points.
José María Rodríguez, Bolsamanía technical analyst, said that without the support of the banks it is difficult to see a way up for the Ibex. "The problem is that without the big blue chips and the support of the banks, we can't go very far, and there's little to suggest further strength."