The Ibex 35 closed Monday's session up 0.23% at 19,033.3 points, despite the falls of banks and telecoms exposed to Brazil following that country's elections.
The Ibex 35 closed Monday's session with a rise of 0.23%, reaching 19,033.3 points, according to information published by Valencia Plaza. The index thus recovered the 19,000-point mark despite the declines of some values linked to Brazil.
The day was marked by expectations for the rest of the week. On Wednesday, the Federal Reserve of the United States (Fed) will meet, followed by the European Central Bank (ECB) and the Bank of Japan in the two days after. Additionally, the earnings season begins.
In the financial sector, after the accounts of Bankinter last Thursday, this week Mapfre, Línea Directa, Banco Santander, BBVA, CaixaBank, Banco Sabadell, and Unicaja will present their results. From the energy sector, Endesa, Redeia, Repsol, and Naturgy will also report, along with Ferrovial.
Values exposed to Brazil fell after the electoral result. Telefónica dropped 6.41%, Banco Santander 3.09%, and Mapfre 1.82%. The fixed income analyst at Julius Baer, Eirini Tsekeridou, notes:
“After the first round, held in early October, markets had largely discounted a victory for Bolsonaro; this suggests a significant correction in Brazilian assets and greater volatility, given the ongoing doubts surrounding fiscal policy.”
On the upside, Grifols rose 5.31%, Indra 4.14%, IAG 3.96%, Solaria 3.46%, ACS 2.97%, and Unicaja 2.32%. Among those that fell the most, alongside Telefónica, were Cellnex (2.98%) and Naturgy (1.80%).
In Europe, London advanced 0.72%, Paris 0.82%, Frankfurt 0.91%, and Milan 1.29%. Brent was trading at $111.33 at the close of the European session, and West Texas Intermediate (WTI) at $103.01, down 0.24%.
In fixed income, the ten-year sovereign bond stood at 4.006%, compared to 4.039% at Friday's close, and the risk premium over the German bond fell to 63.6 basis points. In currencies, the euro dropped 0.16%, to $1.1184 per euro.
The next key date is the Fed's decision on Wednesday, followed by the meetings of the ECB and the Bank of Japan in the two days after.
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