The Ibex 35 extends the rally and exceeds 11,700 points led by Ferrovial and Puig

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By Jack Ferson

The Ibex 35 extends the rally and exceeds 11,700 points led by Ferrovial and Puig

The IBEX 35 rose 0.77% at the opening this Monday to reach 11,746.60 points. At the head of the advances is Ferrovial, with an increase of 2.25%, compared to the 1.93% that Puig aims for. Only Caixabank is negative at the opening, with a slight decrease of 0.27%, while Redeia is flat.

The Madrid selective comes from a week that managed to save slightly in positive (+0.17%) after having accumulated three days of advances, and that despite the fact that the banks, with a lot of weight in the index, acted as a burden during the past Friday.

Today the financial sector can once again take center stage after Morgan Stanley has adjusted some of its recommendations. Specifically, it raises Banco Santander’s recommendation to ‘overweight’ from ‘equal weight’, while cutting Caixabank to ‘equal weight’ from ‘overweight’.

Furthermore, the financial sector may be shaken by corporate movements in Italy, after UniCredit has launched a 10 billion bid on its Italian rival Banco BPM.

In the energy sector, Iberdrola is fighting with eleven companies for 2.9 GW of offshore wind in France, according to a publication The Economist. The French Government has prequalified 12 bidders for the AO9 tender of up to 2.9 gigawatts (GW) to install offshore wind farms in four locations.

The market is still pending in addition to Brookfield’s possible takeover bid for Grifols. According to the newspaper Expansiona “British-style” negotiation could lead to improvements in the Canadian fund’s offer for the blood products company.

In other news of the day, RTVE has awarded Telefónica the public contract for the satellite distribution of its signal for South America, Central America and the eastern part of North America for 4.18 million euros. The telecom will provide the public corporation with services that allow “permanent broadcasting in ‘ku’ band and through the DVB-S standard” of the signal.

In the Continuous Market we will have to pay attention to the OHLA price. As published The Economistthe company freezes the dividend for five more years, but will renegotiate when it redeems bonds.

Clinica Baviera recorded a net profit of 28 million euros until September, 4% more compared to the same period of the previous year, including the United Kingdom and the costs associated with the purchase of the British company Optimax. Excluding this impact, the company earned 31 million euros in the first three quarters of 2024, 14% more year-on-year

The macroeconomic agenda for this Monday is quite light, although right at the opening the producer price index (PPI), which shows an interannual rate of -3.9%. Today the German Ifo business confidence index for November will also be released, while in the US the national activity of the Chicago Fed for October and the manufacturing business index of the Dallas Fed for November will be released. Over the next few days, preliminary readings of inflation for the month of November will also be published in the main economies of the Eurozone, while in the US the reading for October will be known. personal consumption price index, the PCEwhich is the price variable most followed by the Federal Reserve (Fed), as well as the minutes of the meeting held at the beginning of November by the Federal Open Market Committee (FOMC) of the Fed.

At the moment in the European stock markets, the German DAX wakes up with increases of 0.85% at 19,470, the FTSE 100 in London rises 0.42% at 8,297, the French CAC 40 rises 1.03% at 7,329 .93 points and the EURO STOXX 50 advances 0.79% to 4,827.55 points.

Wall Street futures point to a bullish opening after the DOW JONES rose around 2% last week and ended at a new record at 44,296.51 points. It will be necessary to take into account that this week will be shorter than usual on the New York Stock Exchange, since On Thursday the market will be closed for Thanksgiving Daywhile on Friday (Black Friday) only half a session will be held.

“With the celebration of Black Friday, the Christmas shopping season officially begins, in which many listed companies ‘risk’ a large part of the year’s results,” recalls Juan J. Fernández-Figares, of Link Gestión. “In principle, it seems that in the US consumers face it with an upward optimism, optimism that has improved after the presidential elections, while European consumers do so with their sentiment quite penalized, both due to the weakness of the region’s economy as well as the political instability that countries like France and Germany are going through.”

During the Asian session, the stock markets rose following the bullish trail set by Wall Street, with the Nikkei 225 index in Tokyo having risen 1.08% to 38,735 points. The Chinese stock market has once again distanced itself from the bullish trend, with the CSI 300 losing almost half a point.

In commodity markets, oil prices retreat after rising 6% last week, but remain near two-week highs, as geopolitical tensions grow between Western powers and major oil producers Russia and Iran. , which increases the risks of supply interruption. Thus, the benchmark Brent in Europe fell 0.96% to $73.92, while American West Texas futures fell 1.04% to $70.51.

The dollar is falling against its rival currencies, with the euro rising 0.46% against the greenback to a cross of $1.0464 for each single currency.

While, US bond yields fall after selection of fund manager Scott Bessent as next US Treasury secretarywho investors hope will be a voice for the markets in Washington. Thus, the yield on the ten-year US bond stands at 4.326%, while the two-year bond pays 4.333%.

On this side of the Atlantic, the Spanish ten-year debt bond offers a yield of 2.95%, which leaves its risk premium against Germany at 72.60 points.

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