The Ibex 35 has dropped by 0.42% this Wednesday, settling at 19,275.5 points, dragged down by the banking sector and energy companies, which neutralised Wall Street's upward pull.
The Spanish stock market could not take advantage of the tailwind from Wall Street or the 1% drop in oil prices. The Ibex 35 closed this Wednesday's session with a decline of 0.42%, down to 19,275.5 points, thus losing the 19,300 points mark it had conquered in previous sessions.
The benchmark index of the national market has accumulated a revaluation of 11.37% so far this year, but the session was marked by the drag from major banking and energy stocks. The banking sector, measured by its sector index, fell by 0.8%, while oil and electricity companies also suffered significant losses.
Banks and energy hold back the Ibex
Among the major stocks, Repsol saw the largest drop, with a decrease of 2.05%, followed by BBVA, which lost 1.06% after an unfavourable report weighed on the stock. Telefónica fell by 0.83%, Iberdrola by 0.42%, and Banco Santander by 0.13%. Only Inditex managed to close in positive territory, with an increase of 0.67%.
The largest declines on the Ibex were led by Fluidra, which dropped 2.79% affected by the results of a competitor; Acerinox, which fell 1.58% as it traded ex-dividend; and Caixabank, which decreased 1.24%. On the upside, Grifols led the gains with an advance of 2.06%, followed by Endesa (+0.76%), Indra (+0.72%), and Banco Sabadell (+0.53%).
Oil and geopolitical tension shape the session
The session was influenced by new US attacks on Iran, which bombed targets in the Strait of Hormuz and the Iranian coast. US President Donald Trump threatened to destroy power plants and civilian infrastructure in Iran if peace negotiations were not resumed next week. This military escalation caused declines in European markets.
The price of Brent oil fell by 1.14%, to 83.76 dollars per barrel, while West Texas Intermediate dropped 0.67%, to 78.67 dollars. The decline was due to an increase in weekly crude inventories in the United States. Meanwhile, natural gas in the Dutch market rose 1.44%, to 54.88 euros per megawatt hour.
In the rest of Europe, only Paris managed to close in positive territory, with an increase of 0.19%. Milan lost 0.85%, Frankfurt 0.59%, and London 0.13%. The euro was trading at 1.1438 dollars, with an increase of 0.16%.
Continuous market and other references
In the continuous market, Inmocemento stood out with an increase of 6.79%, while Pescanova was the biggest loser, with a drop of 4.82%. The yield on Spanish ten-year debt rose by one basis point, to 3.58%, and the risk premium over Germany stood at 46.2 basis points.
In commodities, the troy ounce of gold fell by 0.16%, to 4,046.5 dollars, and silver dropped 1.62%, to 57.75 dollars. Bitcoin, on the other hand, rose 1.38% and traded at 65,416.5 dollars.
For investors, the key takeaway from the day has been the inability of the Ibex to keep pace with Wall Street, which was up 0.3% at the close of the Spanish market, due to the weight of the banking and energy sectors. Geopolitical tension in the Middle East and the evolution of oil prices will continue to be determining factors in the upcoming sessions. Analysts recommend maintaining caution and staying alert to the macroeconomic data to be released in the coming days, such as Chinese GDP, which has already shown a slowdown, falling to 4.3% in the second quarter.
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