The Ibex 35 closed the week at 19,585.4 points, up 1.92%, marking its first weekly gain in three weeks. Strong corporate results countered the impact of the Brent oil surge above 100 dollars.
The Ibex 35 managed to close the week with a 1.92% increase, reaching 19,585.4 points, breaking a streak of three consecutive weeks of decline. The Spanish index relied on a better-than-expected earnings season to navigate the energy shock caused by Brent oil prices exceeding 100 dollars per barrel.
In just Friday's session, the index rose by 1.65%, with banking and industrial stocks leading the way. The positive tone of the half-yearly accounts has been the main catalyst, overshadowing geopolitical tensions in the Middle East and rising crude prices.
Among the standout stocks of the week, Acerinox gained 11% after reporting a profit of 77 million euros in the first half, compared to losses of 18 million in the same period last year. Banco Sabadell rose by 5.56% after recording profits of 971 million between January and June.
Repsol advanced by 5.56% after tripling its profit to 2.201 billion euros, driven by higher refining margins. Indra gained 8% weekly, supported by a rating upgrade from Bank of America, which predicts an additional 30% revaluation. Rovi more than doubled its profits, resulting in a 7.2% increase for the week.
The banking sector also contributed to the rebound: Bankinter rose by 3.92%, CaixaBank by 5.73% (before publishing its half-year results), and Unicaja by 3.19%. Utilities Enagás and Naturgy advanced by 3.91% and 3.88%, respectively.
Brent oil surpassed 100 dollars per barrel for the first time since May, with a weekly increase of over 6%. Attacks on two oil tankers in the Red Sea, claimed by Houthi rebels on Thursday, and Donald Trump's threats of a massive attack on Iran heightened tensions. The UN estimates that over 6,000 sailors are trapped in the Strait of Hormuz due to the blockade.
Despite the rising crude prices, the Ibex 35 managed to decouple from market concerns and even outperformed Wall Street for the first time since April in year-to-date performance. The S&P 500 fell by 0.55% for the week, the Dow Jones by 0.65%, and the Nasdaq 100 suffered due to disappointing results from Alphabet and Tesla.
In Europe, the British FTSE 100 rose by more than 1%, the German DAX by 0.6%, and the EuroStoxx 50 by 0.45%. The French CAC 40 remained flat, while the Italian FTSE MIB was the only major continental index to fall, down by 0.4%.
The European Central Bank kept interest rates unchanged this week, but its president, Christine Lagarde, warned that the energy shock could intensify, opening the door to a rate hike in the September meeting. The market is pricing in up to two increases after the summer amid a more inflationary macroeconomic environment.
From a technical perspective, Joan Cabrero, an analyst at Ecotrader, notes that the Ibex 35 is approaching the 19,640-point level. Surpassing that threshold would definitively close the bearish gap and open the door to greater gains. Next week, investors will be watching the Federal Reserve's assessment of the US economy amid rising inflation and conflict in the Middle East.
For investors, the lesson of the week is that corporate fundamentals can prevail over geopolitical noise. The results from Acerinox, Sabadell, Repsol, Indra, and Rovi have shown that Spanish companies are generating cash and improving margins, providing some cushion against volatility. However, the evolution of oil prices and central bank decisions will continue to dictate the pace in the coming weeks.
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