- Market rises by 0.75% to 8,960.4 points
- Banking sector pushes the market higher, apart from Sabadell
- Investors are still waiting on comments from ECB president Draghi
The Ibex 35 closed on Wednesday with a rise of 0.75% to 8,960.4 points. This marks the third consecutive day of gains for the Spanish index, and sets up an assault on 9,000 for the rest of the week with its best performances since October. The banking sector is hoping for a restructure of Italian banks.
- 11.659,200
- 0,35%
Arcelor Mittal was the best performer of the day with a rise of 4.67% to 7.88 euros. Its stock has gained 157% over the course of this year. On Wednesday, the company's strategy officer David Clarke said that there should be more control in the iron and steel industry facing China. Banco Popular followed it with an advance of 3.99% to 0.99 euros.
The third-highest performer was Indra, which gained 3.92% to 10 euros. Abanca and various shareholders of Tecnocom have turned to a takeover bid for Indra and sold its 52.7% for 168 million euros.
The Spanish banking sector is speculating about a possible bailout for neighbouring Italian banks. BBVA and Banco Santander, the two biggest stocks in the Ibex, closed with gains of 1.29% and 2.47% respectively. In the case of Santander, the New York Federal Reserve warned of the risk of a bubble for the bank in the US. The bubble relates to loans for the purchase of cars.
Telefonica closed on Wednesday with a rise of 0.93% to 7.90 euros. The British firm HSBC released a report which analyses the situation of the biggest telecommunications company in Spain. HSBC elevated the price of the company to 9.10 euros.
On the other side of the board, Tecnicas Ruidas picked up the wooden spoon for the session with a fall of 2.79% to 35.76 euros. In the bottom part of the table it was accompanied by Grifols, which lost 2.3% to 16.75 euros. The third worst performer was Bankinter which was 1.8% lower at 7.30 euros.
Inditex was the only heavyweight of the index which finished in negative, with the textile company due to present its results for its third quarter next Wednesday the 14th of December.
In the general stock exchange, on Wednesday the most important stock was Sacyr, which rose 0.54% to 2.06 euros. The company has shot up 77% since its annual lows in June, after the Brexit result.
In the rest of the European markets, green was the predominant colour also. The Dax 30 in Germany rose 1.89%, the FTSE 100 of London 1.69%. the CAC 40 in France rose 1.23%, and the PSI 20 in Portugal by 1.77%. The Milan stock exchange FTSE MIB closed with a gain of 2.05% three days after the Italian referendum.
On Wednesday the price of oil fell by 1% after the publication of the crude inventories in the United States, which fell more than expected. At the close of markets in Europe, the Brent benchmark fell 0.67% to $53.57. US reference West Texas lost 0.92% to $50.46.
The markets are currently waiting on tomorrow's speech from European Central Bank president Mario Draghi, and with the markets closed in Spain due to a national holiday on Thursday it will be Friday before the full extent of its impact is known.
Bolsamania technical analyst José María Rodríguez said that "the gains of Wednesday do not have a hge amount of relevance, technically speaking."
"The upwards movement, the surpassing of the higher range was produced in the session only when the price leaped and closed comfortably above the 8,755-8,760 range," explained Rodríguez.
