The Ibex 35 closes at its lowest level in two months due to China and the Government’s fiscal measures

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By Jack Ferson

The Spanish stock market loses levels in this second trading session of the week and at the close it is at its lowest level in the last two months, even below 11,400 points. With almost the entire selective in negative with a strong setback that came, especially in the final hour of the session in two ways. And with the entire Ibex that closes in negative, with the exception of Endesa

The first, the effect of the plummet falls today in the Asian stock markets, due to the effect of the possible Trump cabinet appointments that have been leaked, with one of the great hawks of the Republican party at the helm. Marco Rubio who is emerging as Secretary of State, a kind of Foreign Minister of positions deeply rooted in the implementation of tariffs to Asia and also to Europe, in the hardest line of the Republican party. He will also be the highest-ranking Latino in the West Wing of the White House as of January 20.

Hence the strong impact on values ​​​​such as ArcelorMittal and Acerinox, due to the impact on growth that it may have for countries like China, also suffering from the disappointment of investors due to the lack of weight in the country’s monetary stimuli.

On the other hand, the agreement between PSOE and Sumar, which was announced shortly before closing yesterday, has today had its impact and maximum reading by the values ​​in the market. Large penalty especially for Socimis, such as MERLIN Properties and Inmobiliaria Colonial, which have been the most penalized in the market at closing.

Punishment also for Puig and Inditex for the luxury tax and the potential effect on their results, and banking, on which the tax will be maintained with generalized falls led by Caixabank and Banco Santander.

With all this, the IBEX 35 closes on Tuesday with cuts of 1.85% to 11,382.60 points with heavily penalized values ​​such as MERLIN Properties 7.30%, Inmobiliaria Colonial 5.03% and ArcelorMittal 4.67% and is saved in positive Endesa that gains 0.18%.

Among the news of the day, this strong punishment on Socimis, given the government’s plans to eliminate its tax regime. Bankinter points out that, in general, it is bad news for the real estate sector because “SOCIMIs would lose the tax exemption and would begin to pay corporate tax (25% vs. 0% currently), which would reduce their cash generation and capacity to pay dividends”.

And meanwhile, as far as recommendations are concerned, they come today from Deutsche Bank, with an eye on CaixaBank. The German firm has decided to raise Caixabank’s target price to 5.70 euros, compared to the previous 5.45 euros. Using yesterday’s close as a reference, the new valuation represents a slight upward potential of 2.37%.

And Grifols A because in its recommendation, Deutsche Bank establishes a maintain rating, with an improving target price up to 10 euros from the previous 9, but it represents a negative potential for the value of 8.34%.

Its analyst Emmanuel Papadakis highlights that the adjustments to the company’s model, after the results, are modest and that its general prospects remain unchanged. considers that Grifols is trading at multiples of its already discounted peers in the marketalthough less so in the case of debt/EBITDA given the blood products company’s high debt load, and that these could be said to fairly reflect corporate risks.

Already in Europe, everything is red in the pan-European selective indicator in the 9 sectors that make it up, with special punishment to cyclical consumption, followed by industrial values ​​and basic materials.

With only four slightly rising stocks led by the Dutch semiconductor company ASML, compared to LVMH’s plummeting cut due to the Asia effect, followed by BASF and Novo Nordisk.

Although the focus was on the falls of Mediobanca, more than 8% on the Milan Stock Exchange, after learning that its income estimates are lower than expected and even that the financial institution reduced its forecast of its interest margin for the entire year.

But above all Bayer, with falls of 13%, to its lowest level in 20 years, after the weakness compared to what the market expected of its profits in the third quarter, and above all that it put a ‘profit warning’ on the table ‘ or warning on profits for 2025, in addition to reducing its outlook for all of 2024

At the market close, the EURO STOXX 50 lost 2.24% to 4,745 points, the CAC 40 fell 2.69% to 7,226 points, the Dax gives up 2.13% to 19,036 points, and the session in London ends for el FT 100 with cuts of 1.23% to 8,025 points.

Already on Wall Street, slight profit taking after yesterday’s highs. And among the corporate news, Boeing as the protagonist as it delivers fewer airplanes, just 14 in October, its lowest level since November 2020 and warns its workers that restarting the factories after the strike will take up to seven weeks and warns them of They must return to work before Tuesday. Its shares lost 2.5% at the close of the Spanish stock market.

Home Depot, which has presented earnings per share of $3.67, above the $3.64 expected by the market. Revenues rose to 40,220 million, also exceeding the expected 39,320 million. Its shares, with slight losses, remained at opening levels.

Shopify’s Wall Street-listed shares soar 20.5% in early trading after the company has raised its revenue forecasts for the fourth quarter. Shopify forecasts revenue to be in the mid-twenties percentage growth range, while analysts had expected a 22.7% increase.

At the close of the Spanish stock market, the DOW JONES Ind Average lost 0.35% and stood at 44,136 points, with the S&P 500 down 0.23% to 5,987 points and the Nasdaq OMX down 0. 13% to 19,271 points.

Already in fixed income, asset returns are rising, with gains of 1.18% the 10-year Spanish bond up to 3.091% while, the German bund places its yield at 2.3410% and rises 0.69%. The risk premium also gained positions, 1.8% to 73.40 basis points.

In oil, opening levels for Brent is trading at $71.68 and is down 0.2% and for West Texas, which, in this case, cuts 0.26% to $67.86. Gold Futures resist slightly above $2,600 per ounce, down 0.4%.

The Euro Dollar with falls of 0.4% to 1.0612 units. With Bitcoin as the absolute king of the market, at $85,886 and increases that are close to 2%.

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