The Spanish stock market is fleeing the political noise that has marked the investiture debate of Pedro Sánchez. The Ibex-35 – the main indicator of the national market – posted its fourth consecutive session of increases yesterday, with a new rise of 0.28% that leaves the selective at 9,667 points, touching the highest levels of the year thanks to the push of energy and also from some banks. Iberdrola, Redeia, Solaria and Naturgy were at the top of the table with increases of between 1% and 2%, while CaixaBank and Banco Santander also closed in the green.
Precisely, both sectors are the most sensitive to the coalition pact between PSOE and Sumar to continue taxing their benefits beyond the two-year temporary tax currently in force. But not only them. Aena, for example, is also a value in focus given the plan to reduce domestic flights on routes with a rail alternative of up to 2.5 hours. The company lost about 2.5% on the stock market when the agreement was announced on October 24. But since then it has recovered 10.5%, now trading at 151.6 euros per share after adding another 0.46% yesterday.
Since that day, the Ibex-35 has appreciated 7.5%. And in the most bullish moments of recent sessions it has even exceeded 9,700 points at times. A level that has not been exceeded in any closure since February 2020, just before the outbreak of the pandemic. For the year, the Spanish index has already accumulated gains of 17.6%, one of the best in Europe.
This market trend shows that investors have long discounted the current political scenario and the increasing tension between the Government and the business sector, with harsh criticism of the pacts from the main directors of the Ibex and other large businessmen in the country. for the investiture. So, despite the turbulence that may occur in the short term as plans that affect different companies are detailed, the market maintains its attention on other references with a greater global impact, such as the recent moderation of inflation, both in Europe and in the USA.
“Given the slow but constant reduction in inflation in the main economies, investors assume that the main Western central banks have already completed their process of raising rates,” indicate analysts at Link Securities. The firm insists, however, that the general CPI and, above all, the underlying rate – the hardest to combat – “continues to be in all these countries well above the 2% objective established by the monetary authorities, therefore which is soon to declare victory.
What’s more, the strength that some references are showing, such as retail sales in the United States, point to consumption continuing to rise, which in turn may exert more pressure on prices.