The Ibex 35 has maintained its bullish streak that began this week by registering a 1.58% increase on Tuesday, reaching 13,354.7 points. This means that the selective index of Spanish stock exchanges and markets has gained over 200 points in a single session.
On Tuesday, the German Bundestag approved a 500 billion euro package to reform infrastructure, promote climate initiatives, and boost defense spending, marking a political shift after years of public debt containment. The proposal, supported by the Christian Democratic Union (CDU), the Social Democratic Party (SPD), and The Greens, includes a partial lifting of the debt limits enshrined in the Constitution, known as the ‘debt brake’ adopted in 2009.
Coinciding with this vote in Germany, European Commission President Ursula von der Leyen delivered a speech in Denmark stating that by 2030, Europe must have completed its rearmament process. Investors also kept an eye on the planned conversation between the Presidents of the United States and Russia, Donald Trump and Vladimir Putin, regarding Ukraine.
Under the economic umbrella, it was reported that German investor confidence significantly improved in March for the second consecutive month, according to the ZEW indicator, reaching its highest level since February 2022. This was attributed to the fiscal turnaround indicated by major German parties following federal elections and the ECB’s interest rate cuts.
Furthermore, the Federal Reserve of the United States (Fed) will announce its monetary policy decision on Wednesday. Investors are eager to learn about the central bank’s future interest rate guidance.
In this scenario, CaixaBank led the gains in the Ibex with a 5.01% increase. Following closely were Bankinter (+4.42%), Banco Santander (+4%), Indra (+3.63%), Unicaja (+3.33%), Fluidra (+2.69%), and Banco Sabadell (+2.45%).
Only four stocks ended Tuesday with losses: Iberdrola (-0.36%), Puig Brands (-0.28%), Colonial (-0.18%), and Merlin (-0.10%). The other major European stock exchanges also closed positively, albeit with smaller gains than the Ibex 35. London advanced by 0.29%, Paris by 0.50%, Frankfurt by 0.98%, and Milan by 1.31%.
The Brent barrel price stood at $70.51, a 0.79% decrease, while the West Texas Intermediate (WTI) reached $66.84, down by 1.08%.
In the debt market, the yield on the Spanish 10-year bond closed at 3.437%, slightly higher than Monday’s 3.435%. Consequently, the risk premium increased by one point to 62.7 basis points.
Regarding currencies, the euro appreciated by 0.14% against the dollar at the end of the European session, trading at an exchange rate of 1.0939 ‘greenbacks’ per unit of the common currency.
FUENTE
