Uncertainty surrounding the next moves by central banks added volatility to stock markets.

Uncertainty surrounding the next moves by central banks added volatility to stock markets.

Uncertainty surrounding the next moves by central banks added volatility to stock markets.

The Madrid Stock Exchange in a file image.

The east border of Europe had never been so close to the financial heart of Spain. Tensions in Ukraine once again took their toll on a Ibex 35 that accumulated losses of 2.37% and delivered the 8,600 points in the third week of February. To the sound of the threat of war, its worst weekly performance in the last three months. Since the detection of the omicron variant in South Africa.

The Ibex 35 ended the week at 8,590 points. The sessions that most contributed to the descent to this level were Monday and Friday. In the first, falls of 2.55%. In the last one, 0.94% despite having started the day between timid attempts to come back after the declines suffered by the index the day before.

Despite the fact that mid-week there was a certain relaxation in the markets thanks to the fact that Russia announced the military withdrawal from the border area with Ukraine, the subsequent denial of these movements by the US and NATO once again made the drums of war sound. Even more so once the leaders of the separatist and pro-Russian region of Donetsk ordered an emergency evacuation of its entire civilian population.

As if that weren’t enough, the tense awaits the March appointments of the major central banks It ended up getting on the nerves of investors, who in many cases chose to sell before things got uglier. In this sense, the turmoil was felt especially in the fixed income markets, with a strong pull for bond yields.

A rise in rates, and therefore a fall in prices, which, however, was no longer uniform. Not just between the Eurozone and the US -where the Federal Reserve (Fed) has been determined to raise rates in March-, but also between member countries of the single currency club. Peripherals were once again singled out and Spain’s risk premium, to go no further, once again recovered the level of 100 basis points.

setback in banking

Back to the Ibex 35, among the values ​​that have paid off the week the worst, the banks after weeks celebrating the approach towards a new stage with higher rates. Bankinter 6.3% was left and two other entities lost more than five percentage points: Sabadell Bank Y BBVA. Very close to this level, CaixaBank4.8% down.

However, none of them was the most penalized of this week dominated by the news on the eastern border of Europe. This position belonged to naturgy, which digested the announcement of its plans to split into two independent listed companies with falls of 14.4%. A roadmap that he has dubbed the ‘Gemini project’.

Among the most bearish of the week were also placed ArcelorMittal (-7.4%), IAG (-5.9%) and PharmaMar (-5.2%).

On the nicer side of the revaluation table, first place for Rovi. The pharmaceutical added 5.8% driven by its according to modern to continue manufacturing several of its products for ten years, with the anti-Covid vaccine among them.

The following podium positions were taken Ferrovial (+3.1%), which announced the achievement of several agreements to expand its presence in airports, and Siemens Gamesa (+2.2%), which benefited from the insistence on the possibility of an exclusion bid formulated by its parent company, the German Siemens Energy.

punishment and ransom

In Friday’s session, marked by the volatility typical of a session in which the usual monthly expiration of futures, options and other derivatives, what began with timid attempts to come back ended with strong declines. Although not at session lows.

The most bulky descents were scored Siemens Gamesa (-4.2%), Solaria (-3.1%) and Aena (-3.1%), which this Friday announced the decision of the National Commission of Markets and Competition to lower their rates to airlines by 3.17% in order to encourage the reactivation of the sector.

Despite the fact that in the early hours it became one of the bastions in which the Ibex 35 hid to stop the downward pressure, Repsol The day ended with falls of 1.2%. And that was the target of several investment advice improvements in the heat of its annual accounts published on Thursday. Among them, the Berenberg analysts, who raised their target price from 12 to 13.5 euros per ticket.

From the other end, PharmaMar became the target of bargain hunters, who raised their price to the edge of 54 euros between increases of 2.7%. Your industry partner Grifols followed it at a more than prudent distance of 0.9%. Between the two, the Sabadell added 1.6%.

Beyond the Ibex 35, Gathered techniques became the protagonist in the final stretch of the session. Barely an hour and a half before closing she announced the approval of the Council of Ministers to its public rescue by the State Society of Industrial Participations (SEPI). Enough to reduce the sharp declines that were noted from the first hour to 3.2%.

100 bonus points

Without losing sight of any indication of what will be the decisions of the big central banks Looking ahead to its meetings next month, peripheral risk premiums remained at the levels they reached on Monday. Thus, the Spanish differential ended the week at 101 basis points.

Although the return on the ten-year Spanish bond softened to around 1.2%, the benchmark German ‘bund’ eased more strongly in the secondary European sovereign debt market. Up to 0.19%.


Leave a Reply

Your email address will not be published.