The Ibex 35 ended the first session of November at 18,957 points, with a rise of 1.63% driven by banking, tourism, and the drop in Brent.
According to merca2.es, the Ibex 35 closed the first session of November at 18,957 points, after advancing 1.63%. This is its best day in three months and leaves the index 43 points away from the 19,000 mark.
The boost came from two fronts. On one hand, Brent lost more than 7% during the session, which benefited companies with high energy costs. On the other hand, banking and tourism companies pulled the index up.
The market linked the drop in crude oil to expectations of progress in negotiations between the United States and Iran. According to session information, this is an expectation, not a confirmed supply data.
In the tourism sector, the drop in kerosene prices improves margins. IAG is the company in the index most exposed to fuel prices, while Aena, Amadeus, and Meliá benefit from the effect on air traffic.
The banking sector also rose. CaixaBank, Santander, BBVA, Sabadell, and Bankinter account for a significant portion of the Ibex 35's weight, so their performance directly impacts the index's results. Banking business depends on the cost of money, and the European Central Bank continues to set the pace of its expectations at each meeting.
According to the session analysis, the rise is supported more by company valuations than by their results. For the index to surpass 19,000 points, the drop in oil would need to be sustained for more than one session.
Repsol plays in the opposite direction, as its business directly depends on crude oil prices. This exposure dampens the effect of the oil drop on the overall index.
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