Ibex 35 drops 0.2% to 18,980 points, pressured by Telefónica (6.3%) and Santander (4%). Both stocks react to Lula da Silva's victory in Brazil's presidential elections.
Ibex 35 falls 0.2% to 18,980 points in Monday's session, weighed down by declines in Telefónica and Santander. According to El Confidencial, the Spanish index follows a day marked by the results of Brazil's presidential elections.
In that country, Lula da Silva unexpectedly defeated Flávio Bolsonaro in the runoff. After the elections, the São Paulo Stock Exchange suspended trading for half an hour due to a sharp drop in values, while the real lost 12% against the dollar.
When trading resumed, the iShares MSCI Brazil ETF plummeted 23%, its largest drop in 26 years of history. In Madrid, Telefónica fell 6.3% and JP Morgan downgraded its recommendation from 'neutral' to 'underweight'. Santander dropped 4% and was the biggest loser of the day.
The rest of the financial entities remained positive. CaixaBank rose nearly 2%, Unicaja 1.5%, Sabadell 1.3%, and BBVA 1%, which mitigated a larger drop in the index.
In Europe, the German Dax rebounded 0.9%, the French Cac gained 0.8%, and the Italian Mib rose 1.2%. In Wall Street, futures pointed to a 0.1% rise for the S&P 500 and a 0.25% decline for the Nasdaq.
Regarding Spanish companies, Galp plummeted 9% after breaking its plan with Moeve to create an Iberian energy giant. The oil company reported a profit of 1.494 billion euros until September, a 54% increase compared to the same period last year.
The week will continue with the decision on interest rates from the Fed on Wednesday and from the ECB on Thursday. Both central banks do not expect any changes.
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