The Spanish index suffers its worst session in the last three weeks while the possibility of a Russian military incursion continues to rise.

The Spanish index suffers its worst session in the last three weeks while the possibility of a Russian military incursion continues to rise.

The Spanish index suffers its worst session in the last three weeks while the possibility of a Russian military incursion continues to rise.

The Madrid Stock Exchange in a file image.

The diplomatic route to avoid a war in the border between Ukraine and Russia seems more and more exhausted. The withdrawal of risk positions in the markets it accelerates: the Ibex 35 lost 2.55% this Monday and the risk premium of Spanish bonds climbed above 100 basic points.

The growing tension on Europe’s eastern border resulted in a new black monday of sharp declines for stock markets. Especially for the European ones, which would be the most affected by a potential armed conflict. So much so that he Ibex 35 suffered its worst session in the last three weeks, falling to 8,573.8 points in its last cross.

The power of decline, more or less uniform from the very opening of the session, was such that it meant for the Spanish index its fourth worst closing so far this year. The attempts to save the 8,600 points were completely unsuccessful, also eroded by the uncertainty about what the next central bank moves.

This is how the Ibex 35 closes
Eduardo Bolinches

The climate of tension, fueled by the decision of several countries to repatriate their diplomatic personnel in Ukraine or recommending the departure of its civilian population resulted in an omnipresent red in all European squares.

The ACC 40 French lost 2.3%, while the DAX german and the ftse MIB they tied 2% lower. Somewhat softer, the decline of 1.7% of the ftse 100 British. In short, the Ibex 35 remained the red lantern.

crash exception

Back to the Spanish index, fully red with one exception. Only Cellnex managed to dodge the losses with a negligible rebound of 0.4% to exactly 39 euros per share. The next two in the table of revaluations, Telephone Y Siemens Gamesacouples with a decline of 0.9%.

Until 23 values ​​of the Ibex basket suffered declines of more than 2%. Among the most penalized, representatives of two of the sectors that had managed to rise with more vigor in previous weeks: banking and tourism.

Among the first group, the worst part was taken by Sabadell Bank, as is usual in episodes of volatility for financial securities. Its shares fell 4.1%.

The titles of BBVA They were the next ones down, with a 4% drop on the same day that it announced an investment of 300 million in the Brazilian digital bank Neon. 3.9% lost Santander Bank.

For those listed in the tourism sector, IAG it was placed at the bottom, with a landing of 4.8% for its listing on the stock market. A level that, however, surpassed and easily the steelmaker ArcelorMittalwith a drop of 6.3% at the head of the declines of the Madrid selective.

It wasn’t even saved from burning Repsol. The energy company dropped 1.7% despite the bill -in this case rising- that the tensions with Russia transferred to the price of oil. The brent barrelthe reference in Europe, became more expensive to exceed 96 dollars for the first time since 2014. Eight years ago.

Raw Materials

This rise in the price of crude oil, as well as the 2.7% rise in natural gas, was not the only impact on the commodity market. The search for investment refuge translated into increases of more than 1% in the price of goldwhich exceeded 1,860 dollars per ounce.

Furthermore, on this occasion, contrary to what happened three weeks ago, the bitcoin it also became a destination for investors. With increases close to one percentage point, its price was around the reconquest of 42,700 dollars.

Sovereign bonds

Due to the secondary debt market, the investment refuge search in the face of the uncertainty coming from Ukraine and the determination of the central banks to raise rates gave rise to a new increase in risk premiums. However, bond yields eased this Monday from Friday -especially in Germany and the economies considered stronger- due to the return of investor money to sovereign bonds.

the recent escalation of the Spanish risk premium a new milestone was scored by exceeding 100 basic points. The differential between the return that investors demand from Spanish bonds at ten years against the Germans it had not been this wide since June 2020.

Exactly ten days ago, the Spanish one-decade bond exceeded 1% rates for the first time in 33 months. A level that, then, translated into a risk premium of 80 basis points. In some bars of negotiation in the secondary debt market this Monday, spreads were even higher than 105 points.

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