Banks drag Ibex down but Spanish index maintains 8,600 level

The Ibex 35 finished in the red on Wednesday. The banking sector has dragged the Spanish index down to the negative numbers, although strong performances from other sectors held it above 8,600 points. It fell 0.56% to 6,638 points, with no banks ending the day in the green. However, oil prices have continued to rise after several days of losses.

Undoubtedly the main failings of today's Ibex session came in the banking sector. Caixabank fell 2.42% to 2.80 euros. Banco Popular is the next biggest faller in the market after a loss of 2.29%, with Banco Sabadell following on 2.21%.

Merlin, who were the fourth biggest losers in the Ibex today, fell 2.09% to 9.20 euros. On Monday the company posted its quarterly results, in which it confirmed its level of debt to be 3.5bn euros at the end of the first nine months of the year.

The two biggest banks in the Spanish index also closed with losses. In the case of BBVA with a loss of 0.52% and for Santander a loss of 1.08%. JP Morgan reiterated its recommendation to buy Santander however, and assured that it will regain its 5 euro level.

Another interesting value to be aware of is Iberdrola, that fell 1.2% to 5.50 euros. Goldman Sachs has said that now is the time to buy European energy stocks as they have taken punishment in recent sessions, and are likely to recover soon.

On the other side of the coin, Cellnex led the advances with a boost of 1.94% to close on 13.39 euros. The company was one of the stocks most punished in the last week after losing more than 10% of its value. Amadeus was the second-highest riser with 1.61% to finish on 40.90 euros, accompanied by Mediaset with a 1.55% rise.

European stocks also experienced a red day at the office, with the CAC 40 in France dropping 0.68%, while the DAX 30 in Germany fell 0.59%, with bank stocks once again the culprits.

Across the channel, the FTSE 100 in London fell 0.55%, despite Britain posting lowest unemployment levels in 11 years on Wednesday.

In the oil market, prices are bouncing back after a boost of 4% on Tuesday with the hopes of investors of an agreement in the OPEC to cap production levels. According to experts, the freezing of production at 32.5m barrels per day is closer, but it will not be known officially until the November 30 meeting in Vienna. However, on Wednesday at the close of European markets, the price of Brent crude saw a rise of 0.68% to $46.63.

According to Bolsamanía technical analyst José María Rodríguez, the session was more volatile than normal.

"The interesting thing is that we are closing far from the minimums of the session, and it could be said that the price is gaining a reaction to avoid the September lows," affirmed Rodríguez.

Investors are continuing to remain vigilant in face of the political ramifications of a Donald Trump presidency. The Republican has said openly that he plans to increase investment in infrastructure and reduce taxes in order to stimulate the economy. These measures would likely lead to inflation, making a rise in interest rates by the Federal Reserve more likely.

Dallas Fed chairman Robert Kaplan said on Tuesday that it was the moment to begin to "normalise" interest rates, because such low levels are distorting the market. Kaplan does not have voting rights in December's meeting, but his opinion is aligned with the majority of analysts.