The Ibex starts the month with oil relief
The bearish wave of October is giving way to a start to November with lower doses of tension. The day's agenda favors a truce today that is reinforced by the correction in the price of oil. The Nasdaq is pointing to a rebound, and the Ibex is looking to at least slow its falls.
As the month of October fades into November, a period of relative calm is setting in for Spanish stock markets, particularly the Ibex. The sharp decline observed last week has given way to a more subdued trading session, with investors cautiously optimistic. Following a tumultuous few days, the festive nature of today's market day has largely relaxed Spain's local agenda.
The international backdrop further eases the pressure on Spanish equities. With Wall Street set to close, traders are eagerly anticipating Apple's earnings results. Confidence in the tech giant's ability to restore investor trust is high, and a potential rebound in tech stocks is on the horizon.
In this context, the tech sector and the broader AI rally are providing an additional layer of relief amidst mounting concerns about financing costs. Among technology stocks, the decline seen in Intel on Friday has been a positive outlier, compared to a -28% drop experienced by the same company last week.
Oil prices, one of the primary inflationary concerns, are showing signs of easing as the new month begins. Brent crude, which surged over 13% in October, is retreating towards $110 per barrel. Investors are watching closely as ongoing mediation efforts aim to de-escalate the conflict in the Middle East, with the outcome of the U.S. midterm elections on the horizon potentially playing a crucial role.
Today's session marks the start of a transition period for global markets, as evidenced by a slight dip in the Nikkei Japanese index (-0.3%). Wall Street futures, buoyed by a resurgence in tech stocks, are signaling a more optimistic tone for the day. The Spanish market, freed from local results, is showcasing resilience in Europe, having dropped over 2.6% over the past week. After three days of decline, the Ibex is now trading near 18,700 points.
The market's relative calm allows the Spanish market to recover lost ground, with banks like CaixaBank, Unicaja, Sabadell, and Bankinter showing signs of recovery after recent declines. As the earnings season for the banking sector concludes, the positive outlook extends to other sector-linked companies such as CaixaBank, Unicaja, Sabadell, and Bankinter.
Looking ahead, November is expected to begin more favorably for the Ibex, particularly for IAG, the holding company for airlines. The recent downturn in oil prices is providing a positive boost for the airline sector, as are other companies with exposure to air travel, such as Amadeus. This positive sentiment is not extending to all Ibex-listed companies, with Repsol and Acerinox continuing to struggle, down 5.4% on Friday due to their latest earnings reports.
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