The Ibex-35 closed the session down 0.05%, at 19,206.9 points, on a day marked by geopolitical tensions in the Middle East and awaiting corporate results.
The Spanish index closed on Monday with a minimal decline of 0.05%, down to 19,206.9 points, after having briefly recovered the 19,300 mark during the session. The geopolitical context continues to weigh heavily: the US military has completed a new wave of attacks against Iran, the ninth consecutive night, aimed at limiting Iran's ability to attack ships in the Strait of Hormuz.
However, investors are focusing their attention on the upcoming corporate results starting this week. On Wednesday, Banco Santander will report, followed by Bankinter on Thursday, and Banco Sabadell and Mapfre on Friday. Additionally, the European Central Bank (ECB) will meet on Thursday to decide on its monetary policy ahead of the summer break.
Biggest gainers and losers
Within the Ibex-35, the biggest gains were for Grifols (+3.72%), Solaria (+1.78%), Indra (+1.55%), Repsol (+1.43%), Acciona (+1.39%), and BBVA (+0.68%). Conversely, the steepest declines were recorded by IAG (-1.19%), Telefónica (-1%), Fluidra (-0.94%), Aena (-0.92%), Redeia (-0.90%), and Cellnex (-0.81%).
Analysts at Renta 4 believe that the fundamentals remain favourable. "Inflation is moderating, economic activity shows strength, corporate results are positively surprising, and expectations for interest rate hikes are fading," they stated in a release.
Notable corporate movements
In the business realm, Cirsa has acquired a majority stake in Sociedade Figueira Praia, owner and operator of the Casino Figueira in Portugal, one of the country's most iconic establishments. Meanwhile, TSK has received 82 million dollars (71.7 million euros) for financing a 150 megawatt (MW) solar plant in Panama from Avanzalia. The engineering firm recorded the largest increase in the Continuous Market, with a rise of 6.9%.
International markets and commodities
The performance of other major European stock exchanges was mixed. London and Milan fell by 0.71% and 0.04%, respectively, while Paris and Frankfurt rose by 0.02% and 0.06%. In the commodities market, Brent crude was priced at 88.07 dollars, down 0.02%, and West Texas Intermediate (WTI) reached 82.32 dollars, down 0.21%.
The yield on the Spanish 10-year government bond reached 3.608%, up from 3.589% on Friday. The risk premium decreased by five basis points, to 45.8 basis points. In the currency market, the euro depreciated by 0.24% against the dollar, to 1.1412 dollars per euro.
For investors, the key this week will be the results from the major banks and the ECB's decision. If the data confirms the trend of moderating inflation and economic strength, the Ibex-35 could resume its upward path. For now, the index holds the 19,200 points level, a support that analysts consider crucial.
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