The call for general elections on November 29 and the weakness of the euro, at 17-month lows against the dollar, mark the first full week of October in the markets. Experts point to Ibex 35 stocks that may benefit from both factors.
The first full week of October has revealed two factors that condition investment decisions in the Spanish stock market: the call for general elections on November 29 and the fall of the euro to 17-month lows against the dollar. The information, advanced by estrategiasdeinversion.com, suggests that both elements open opportunities in the Ibex 35.
The report from Jefferies considers that the elections could act as a catalyst for Spanish banks. The firm argues that a shift towards the centre-right would favour the sector with a more investment-friendly policy, a possible review of the banking tax, and, in the case of Caixabank, a potential sale of the stake still held by the state.
On the other hand, the depreciation of the euro against the dollar benefits Ibex 35 companies with a greater international weight, as the conversion of their accounts in dollars improves their results. Manuel Pinto, head of Markets at XTB, identifies five stocks that can take advantage of this scenario: ACS, Grifols A, Banco Santander, Acerinox, and Amadeus.
“The general elections on November 29 (are) a possible catalyst for Spanish banks”
In the consumer goods sector, rising energy and transport costs, high interest rates, and a consumer with a strained budget mark the final stretch of the year. Despite this, Deoleo and Coca-Cola Europacific Partners stand out for the strength of their fundamentals and their technical performance, according to expert analysis.
October has a bad reputation in the markets due to three major global crashes and two strong crises in Spain. However, in the last 50 Octobers, the S&P 500 has risen 31 times and fallen 19 times. The Ibex 35 has recorded 22 increases and 12 declines in October since its inception.
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