The Ibex 35 closed on October 23 at 18,989.8 points, with a weekly drop of 1.74%. The French risk premium and doubts about artificial intelligence have reduced the margin of the Spanish market.
According to Periodista Digital, the Ibex 35 closed on October 23 at 18,989.8 points, after accumulating a weekly drop of 1.74%. The index remains close to 19,000 points, but tensions in France's debt, a decline in luxury sales in China, and doubts about artificial intelligence have reduced its room for manoeuvre.
The yield on the French ten-year bond has surpassed 5.05%, and the risk premium has reached levels not seen in fifteen years. Protests and political uncertainty are complicating the French government's management of public accounts. A sustained increase in financing costs could tighten credit conditions for businesses and households in the eurozone, affecting banks and heavily indebted companies.
In the Ibex, banks and energy companies have supported the index. Repsol was one of the few safe havens of the day, benefiting from the price of oil, although high crude prices also pressure the margins of several industries and fuel inflation.
In the automotive sector, Volvo Cars lost nearly a third of its value after reporting operating losses greater than expected, a decline in sales in China, and a 6% cut in its workforce. The company acknowledged that Chinese brands are gaining ground in hybrids and electric vehicles.
In luxury, shares of Kering, owner of Gucci, fell 17% after announcing a sharp drop in sales in China. According to published information, OpenAI has reduced its valuation from $1.4 trillion to $1.25 trillion for the pre-IPO round, a figure that remains above the $852 billion from March. The IPO is slated for 2027.
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