Heads and tails in Ibex 35 results

Descending session on Ibex 35 due to the fall of some selective heavyweights on a day marked by macroeconomic data and corporate results.

Among the most famous companies the day we found Pooch which rose strongly when reporting quarterly results late yesterday. The luxury company presented sales growth is much higher than expectedwithout noticing a decline in the premium segment, where it operates. In fact, last quarter’s sales look like they could have been even better as inventories dwindled.

Good results also from Unicaja what increased it net profit 58% compared to the same period in the previous year, while margins grew by double digits, improving on the data published Santander and Bankinter in recent weeks. This publication had a positive impact on many companies in the sector during the period of weak performance in recent weeks following the ECB rate cut. Other companies that published their results were Ena and Ferrovialwhich were received with falls. Also Mapfre closes with losseswhich grew yesterday due to the receipt of its results, but suffers from the damage recorded DANA.

TO Macro-level GDP growth data published worldwide. Spain’s economy grew by 0.8% compared with the previous three months, two tenths above expectations, representing a very positive impulse for the eurozone, despite prolonged weakness in Germany, which managed to escape from recession. In addition, annual GDP grew by 3.4%, four-tenths more than expected.

IN Wall StreetUS indices are trading in different directions. Today we learned the US gross domestic product, which showed growth of 2.8% after a 3% increase in the previous quarter. And hiring at U.S. companies has accelerated the most in a year, indicating surprisingly strong demand for workers. These data once again cast doubt on the further steps of the Fed, which next week will decide to cut interest rates. At the business level, the growth of Alphabet stands out, which recorded strong growth in cloud revenues, while on the other hand we see a strong decline in AMD or Eli Lily. However, the biggest drop of the day came in shares of Super Micro Computer, which fell 25% when Ernst & Young stepped down as auditor of its accounts.

European indices are experiencing a significant declineafter publication disappointing results of European companiesWhat’s worse is the case with Volkswagen, which has seen an alarming decline in profitability. On the opposite side we find UBS. The Swiss bank reached its highest level since 2008 thanks to the strong results presented.

In fixed incomeBond yields in Europe are rising, as they are in the US. Two-year Treasuries, which are more sensitive to imminent Federal Reserve moves, rose slightly while longer-dated tranches were little changed. Similar to the German bond, the rate of which reaches 2.40%.

IN other marketsThe weakness of the dollar affects commodity prices. Oil rebounds to $72 a barrel and gold reaches its all-time high again. On the other hand, the price of Bitcoin topped $72,000, driven by capital inflows into exchange-traded funds as well as speculation about the possible outcome of the US election next week.

Manuel Pinto

Market Analyst