The Madrid index advances by 0.7% at midday, reaching 19,167.6 points, driven by Cellnex and Indra, while Brent rises to $105.74 per barrel.
The Ibex 35 was trading at 12:00 on this Monday at 19,167.6 points, which represents an increase of 0.7% compared to the previous close. With this rise, the Madrid index extends beyond the 19,000 points threshold it barely managed to maintain last Friday. The session is taking place on a national holiday, with attention focused on the evolution of oil prices and the conflict in the Middle East, according to Infobae.
The price of Brent oil, the benchmark in Europe, rose by 1.05% to $105.74 per barrel, while West Texas Intermediate (WTI) increased by nearly 1% to $92.76. This rise is attributed to the escalation of hostilities in the region.
Over the weekend, Houthi militias from Yemen claimed responsibility for attacks on the airports of Riyadh and Dammam in Saudi Arabia, as well as on facilities of the state oil company Aramco. In response, the Saudi-led coalition bombed Houthi positions in the Taiz province in the southwest of the country on Monday.
"With new attacks over the weekend by the Houthis against Riyadh and Dammam, the reality is that they are exerting pressure on the de facto ruler, Crown Prince Mohammed bin Salman, to escalate the war and are putting the US and the kingdom's new defence partners, Turkey and Pakistan, in a delicate situation," experts from Renta 4 have stated.
Additionally, a large oil tanker was hit by a projectile while crossing the Strait of Hormuz, according to Iranian and British sources. Regarding negotiations, the leader of Iran's Supreme National Security Council, Mohsen Rezai, stated that the United States has accepted some of the seven conditions proposed by Tehran to reopen the strait, but deemed the response "inadequate" and warned that "Iranian diplomacy has changed and there will be no return to the 'status quo ante'."
In the Spanish business sector, the Bank of Spain's Survey on Business Activity (EBAE) for the third quarter reflects a lesser impact of the conflict in Iran on international and national demand, as well as on companies' investment decisions. This data contrasts with the concern that the rise in financing conditions in France is generating among major managers, who warn of a possible contagion to the French banking sector.
Within the Ibex 35, the biggest gains were led by Cellnex (+2.05%), Indra (+1.97%), Iberdrola (+1.32%), Grifols (+1.32%), and Bankinter (+1.27%). On the negative side, the only declines were recorded by Repsol (-1.69%), Acerinox (-1.28%), Telefónica (-1.08%), ArcelorMittal (-0.91%), and Fluidra (-0.35%).
The main European markets were also trading positively: Milan rose by 0.67%; London by 0.53%; Frankfurt by 0.5%; and Paris by 0.12%. Analysts from Banco Sabadell anticipated "gains of around +0.4% but with technology stocks weighed down by declines in the sector in Asia."
In the foreign exchange market, the euro lost ground against the dollar and was trading at $1.1181, while the yield on the Spanish ten-year bond fell to 4.079%. The stock session will conclude at 17:30.
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