Ibex 35 retreats 0.70% to 18,993 points, its lowest level since June 15, dragged down by the falls of Banco Sabadell and CaixaBank. Unemployment rose by 23,587 in September and the harmonised CPI of the eurozone climbed to 3.8%.
The Ibex 35 closed the last session of the week with a 0.70% drop, down to 18,993 points, after hitting an intraday low of 18,973, its lowest level since June 15. The Spanish index thus records its fourth consecutive negative day, in a session marked by the poor performance of the major banks, according to information published by fxstreet.es.
The index's decline occurs in a context of mixed macroeconomic data. The Ministry of Labour reported that the number of unemployed increased by 23,587 people in September, a figure lower than the 44,419 in August but exceeding the market's forecast of 17,600. Meanwhile, the preliminary Harmonised Consumer Price Index (HICP) of the eurozone rose by 3.8% year-on-year in September, above the estimated 3.6% and the previous month's 3.2%, reaching its highest level since September 2023.
Within the index, Banco Sabadell (SAB) led the declines with a drop of 2.28%, reaching lows from August 5 at 3.397 euros, accumulating five consecutive sessions in the red. Meanwhile, CaixaBank (CABK) fell by 2.12% and marked lows from June 12 at 11.730 euros, also with five consecutive days of losses.
"High energy prices bring us closer to an adverse scenario regarding inflation," stated Olli Rehn, a member of the European Central Bank (ECB), who added that the institution's projections are subject to "very high uncertainty" and that the rate increases will slow growth in the region.
From a technical standpoint, the Ibex 35 has formed a short-term support at 17,916 points, the low from June 10, while the next key level is at 17,239, the low from May 4. On the upside, the nearest resistance is at 20,310, the all-time high reached on August 13.
Looking ahead to next week, investors will be watching the publication of the Spain HCOB Services PMI, eurozone retail sales, and the report from the ECB's monetary policy meeting.
You may also like
