Ibex 35 loses more than 1.5% in a day of widespread declines across Europe. The rise in crude oil prices and sovereign debt is weighing on the index, with banking among the most pressured sectors.
The Ibex 35 declines by more than 1.5% in a day of widespread losses in European markets, as reported by La Razón. The rise in crude oil prices and the increase in sovereign debt yields have weighed on the Spanish index, a trend that has spread to other markets on the continent and, to a lesser extent, to the US market.
On the positive side, Rovi leads the gains with an increase of over 2%. Repsol also stands out, driven by the rise in oil prices and the release of its operational figures for the third quarter. The oil company has managed to more than double its refining margin compared to the previous quarter through more efficient use of its distillation and conversion plants, which has offset a lower average price per barrel.
On the opposite side, ArcelorMittal plummets by more than 3% due to the high energy costs affecting its European production structure. Solaria also experiences significant declines.
The banking sector faces concerns over fears that rising credit costs may eventually dampen financing demand. Nevertheless, the fundamentals remain strong: the rise in interest rates currently coexists with increasing volumes. In Europe, July data shows year-on-year increases in mortgage credit (+16.4%), consumer credit (+3%), and corporate credit (+8%). In Spain, although new loan signings for individuals are falling, the total balance holds steady thanks to a lower repayment rate and a 5% growth in financing for businesses.
On a continental scale, the FTSE MIB in Italy is down more than 2% hit by banking, with severe declines also in the CAC in France and the DAX in Germany. Among the triggers, the tension in public debt stands out, evidenced by increases such as the 12 basis points rise in the French 10-year bond, generating distrust about budgetary stability and consumption.
The price of Brent crude is trading above 100 dollars: although exports from the Middle East have recovered nearly 80% of the pre-conflict level, instability in the Strait of Hormuz keeps the geopolitical premium high. In currencies, the euro loses ground against the dollar weighed down by the political situation in France, although the high US debt prevents a sharper depreciation of the European currency.
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