The Spanish index opens down 0.94% at 18,938.70 points, below the psychological barrier of 19,000, a level it hasn't dropped since June 12. Tensions in the sovereign debt markets and uncertainties regarding interest rates weigh on the Madrid stock exchange.
The IBEX 35 opened Thursday's session down 179.30 points, a 0.94% decline, settling at 18,938.70 points. With this drop, the Spanish index loses the psychological barrier of 19,000 points, a level it hadn't fallen below since June 12, nearly four months ago, according to data collected by Reuters at 07:01 GMT.
This correction is framed within the tensions affecting the sovereign debt markets, exacerbated by reports that some major tech companies are seeking to raise billions in debt, directly competing for limited financing. In this context, the euro remains near 17-month lows, while concerns about France's finances extend to Italian and Greek debt.
The minutes from the last Federal Reserve meeting, published on Wednesday, reflect that "the majority" of its members consider another rate hike likely before the year ends, although each meeting will be approached with an open attitude. Markets are pricing in only a 19% chance that the Fed will act this month, but assign an 80% probability to a hike in December.
"The majority of members considered another rate hike likely before the end of the year," the Fed minutes state.
The governor of the Bank of France, Emmanuel Moulin, has acknowledged that the country's economic situation is serious, although he specified that it does not require assistance from the European Central Bank. The rising cost of oil, which is surging again due to increased attacks on ships in the Persian Gulf, also does not help investor appetite. The brokerage firm Renta 4 highlights a report suggesting that the White House has requested the Pentagon to prepare plans for a potential attack on Iran before the midterm elections.
In the banking sector, Santander is down 2.06%; BBVA, 1.58%; Caixabank, 1.59%; Sabadell, 1.39%; Bankinter, 1.21%; and Unicaja Banco, 1.40%. Among the major non-financial stocks, Telefónica is up 0.12%; Inditex is down 0.45%; Iberdrola is down 0.05%; Cellnex is up 0.04%; and the oil company Repsol is up 1.08%.
Across the rest of Europe, the FTSE Eurofirst 300 index is down 0.66%. The positive note of the day comes from Samsung and TSMC: the South Korean tech company forecasts that its quarterly profits will exceed 100 trillion won (74.7 billion dollars), with third-quarter profits nearly multiplying nine times due to demand for artificial intelligence chips, while TSMC's third-quarter revenues soared to record levels, surpassing expectations.
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